China's commerce ministry announced on Thursday, January 8, that it will assess and investigate Meta's acquisition of artificial intelligence startup Manus, amid concerns over compliance with Chinese laws and regulations. The investigation highlights growing tensions between global tech expansion and national regulatory frameworks in strategic technology sectors.

Acquisition Details and Regulatory Response

Meta acquired Singapore-based Manus last month as part of its strategy to integrate advanced automation into consumer and enterprise products. While the exact terms of the acquisition were not officially disclosed, the Wall Street Journal reported the deal closed at over $2 billion, citing sources familiar with the matter.

The ministry said companies involved in foreign investment, technology exports, data transfers abroad, and acquisitions must adhere to Chinese laws. "The Chinese government consistently supports enterprises in conducting mutually beneficial transnational operations and international technological cooperation in accordance with laws and regulations," ministry spokesperson He Yadong told a press briefing.

Scope of Investigation

China's Ministry of Commerce will coordinate with relevant departments to evaluate whether the acquisition complies with regulations on export controls, technology import and export, and overseas investment, He said. The assessment reflects Beijing's broader scrutiny of foreign acquisitions, particularly in high-tech and AI sectors.

The investigation will focus on several key areas:

• Export control compliance
• Technology import and export regulations
• Overseas investment requirements
• Data transfer protocols

Broader Industry Implications

The investigation comes as governments worldwide increasingly review cross-border deals in sensitive technology areas, including artificial intelligence, due to national security and data protection concerns. Analysts suggest that such assessments could affect the speed of integration of acquired technologies and may require adjustments in operational or governance structures to meet regulatory standards.

Meta has not yet commented publicly on China's assessment, which could influence the company's plans to deploy AI-driven services and automation technologies in the region. Observers say that outcomes of such investigations could have broader implications for international tech deals, particularly those involving US-based firms and Chinese regulatory oversight.

China's probe into Meta's Manus acquisition signals a more cautious environment for foreign investment in strategic technologies, reflecting the growing complexity of cross-border tech transactions in an increasingly regulated global landscape.

Meta has decided to postpone the international rollout of its Ray-Ban Display glasses due to overwhelming demand in the United States and significant supply constraints. The social media giant announced this decision as it grapples with extremely limited inventory for what it describes as a "first-of-its-kind product."

Delayed International Expansion Plans

The Facebook-parent company had originally planned to launch its augmented reality smart glasses in several international markets starting early this year. The planned expansion included the UK, France, Italy, and Canada, following the success of earlier versions in the US market.

Meta stated it would prioritize fulfilling US orders while re-evaluating its approach to international availability. The company cited the unprecedented demand that has created substantial supply challenges for the innovative eyewear product.

Market Performance and Demand Metrics

The Ray-Ban Display glasses have demonstrated strong market performance since their launch. Key performance indicators show significant consumer interest and market penetration:

Francisco Jeronimo, VP of Data and Analytics for Devices at IDC EMEA, provided these market performance figures, highlighting the product's strong initial reception.

Product Features and Development Partnership

The Ray-Ban Meta glasses, developed in partnership with EssilorLuxottica's Ray-Ban brand, offer multiple advanced functionalities. Users can take photos, stream content, and interact with an AI assistant through the smart eyewear. EssilorLuxottica announced in October that it would accelerate production capacity for its expanding smart glasses business to meet growing demand.

New Feature Announcements at CES

At the annual Consumer Electronics Show in Las Vegas, Meta unveiled several new features for both the glasses and its Meta Neural Band wrist device. The company introduced a teleprompter feature that allows users to read notes and scroll using the accompanying wristband device.

Meta also announced the expansion of pedestrian navigation capabilities to four additional cities:

• Denver
• Las Vegas
• Portland
• Salt Lake City

This expansion brings the total number of cities with pedestrian navigation support to 32, enhancing the practical utility of the smart glasses for urban users.

Supply Chain Challenges

The company acknowledged in a blog post that since launching last fall, it has experienced an overwhelming amount of interest in the product. This unprecedented demand has created supply chain pressures that have forced the company to reassess its global rollout strategy and focus resources on meeting existing US market commitments before expanding internationally.