Beijing is intensifying its review of Meta's $2 billion acquisition of the AI startup Manus. Regulators are examining potential violations of rules on cross-border currency flows, tax accounting, and overseas investments. The probe raises fresh regulatory hurdles for the American tech giant's ambitious AI strategy.

The investigation initially focused on national security risks, given Manus's origins in Beijing and Wuhan. Officials are concerned about whether sensitive data was improperly shared with Meta. This scrutiny reflects broader geopolitical tensions as U.S. firms acquire Chinese-rooted technology, challenging companies like Meta in their global expansion.

Meta's CEO Mark Zuckerberg has pursued aggressive AI acquisitions to compete, with the Manus deal central to that push. The startup's move to Singapore, a practice known as "Singapore-washing," further drew regulatory attention. While unwinding the deal may be difficult, the review signals persistent challenges for U.S. tech firms navigating Chinese regulatory oversight.