China Blocks Manus Acquisition Case, Sends Signal: Transactions in Key Areas Must Comply with Regulations

Reported by Jinse Finance on April 30, citing CCTV, industry lawyers stated that the Manus acquisition case involves transferring domestic AI business assets abroad and ultimately selling them to the foreign company Meta. According to the *Measures for the Security Review of Foreign Investment*, even if the initial transfer occurred between affiliated entities controlled by the founder, subsequent transactions would still fall under the scope of foreign investment security review. Additionally, Manus relocated its headquarters to Singapore while its core business was still based domestically. Subsequently, the company gradually transferred key personnel, technology, and other critical assets related to its core business abroad. Meanwhile, the domestic Manus entity was progressively stripped of its core business, retaining only the operation of non-core business inventory. This entire process ultimately resulted in the overall transfer of Manus Group's core business from within China to overseas. Lawyers emphasized that any attempt to evade regulation through structural design is non-compliant, and compliance is the lifeline of enterprises. Shen Ziying, Senior Partner at Beijing Jincheng Tongda & Neal Law Firm, remarked that this sends a clear signal, indicating where the government's regulatory red lines lie. National security review regulations follow the principle of "substance over form," which she believes establishes a clear boundary. (Dongxin News Agency)