An expert comments on the banning of the Manus merger: relocating through a shell company to circumvent regulations is a form of regulatory arbitrage, and such tactics will ultimately fail to achieve their intended goals.
TechFlame
2026-04-29 14:33
TechFlame2026-04-29 14:33
English
TechFlame News: According to a report from China Central Television, the Office of the Working Mechanism for Foreign Investment Security Review has issued a prohibition decision on the acquisition of the Manus project by foreign investment, ordering the parties involved to rescind the acquisition deal. Manus was initially developed by China's Butterfly Effect Company, skyrocketed to fame overnight after its release in March 2025, relocated its corporate headquarters to Singapore and ceased domestic operations in June of the same year, and was announced to be acquired by U.S.-based Meta in December 2025 for approximately $2 billion.
Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, stated that by transferring its project and funds to Singapore before selling it to a U.S. company, Manus appears to have deliberately circumvented regulatory oversight. If such practices go unchecked, more companies may follow suit, ultimately undermining the nation's developmental interests and security.
Zhou emphasized that China has always maintained an open stance toward foreign investment, but it takes a cautious approach to sensitive investments involving key technologies and data security. "Attempting to evade regulation in a malicious way will ultimately fail to achieve its goals," he said.