Chinese regulators have intensified their investigation into Meta’s proposed $2 billion acquisition of Manus, a leading European virtual reality (VR) hardware firm, signaling increased scrutiny of global technology deals amid rising geopolitical and economic tensions. The development, reported in an article titled “China Deepens Review of Meta’s Landmark $2 Billion Manus Buyout” by Startup News FYI, suggests Beijing is taking a closer look at the broader implications of high-profile tech transactions involving major U.S. companies.
According to the report, China’s State Administration for Market Regulation (SAMR) recently moved the deal into a more rigorous “Phase III” assessment — an advanced stage of antitrust review that is rare and typically reserved for cases with potentially significant market ramifications or national security concerns. While no formal objections to the deal have been made public, analysts indicate that the extended review may reflect China’s growing unease over Meta’s expanding influence in emerging technologies, particularly extended reality (XR), which includes applications in both consumer products and industrial systems.
Meta first announced its intent to purchase Amsterdam-based Manus in late 2025, framing the acquisition as crucial to bolstering its metaverse strategy and enhancing the capabilities of its Quest headsets. Manus, known for its sophisticated motion-tracking gloves and haptic devices, holds a niche but strategically important position within the global VR ecosystem.
The Chinese review adds a layer of complexity to a deal that has already drawn attention from other international watchdogs, including the European Commission and the U.S. Federal Trade Commission. While Meta’s leadership has previously expressed confidence in securing regulatory clearance worldwide, the unforeseen resistance from Beijing calls into question the increasingly fragmented nature of global competition law enforcement.
Market observers point out that China’s decision to deepen its probe could be linked to broader concerns over data sovereignty, technology transfer, and the concentration of innovation assets among a handful of Western technology giants. Given that VR and XR technologies are expected to play growing roles in defense, healthcare, training, and communications, deals in this area are attracting heightened government attention not only for their market impact but also for their potential strategic implications.
The move comes at a time when Sino-U.S. relations remain strained over trade, technology access, and cybersecurity issues. In this context, any major tech transaction involving a high-profile American company is likely to be evaluated not just on economic grounds but through a broader lens that accounts for national competitiveness and control over emerging digital infrastructure.
Should China ultimately reject or place conditions on the Meta-Manus acquisition, it would mark one of the first major confrontations between the Chinese antitrust regime and a U.S. “Big Tech” player in the XR field. It would also underscore the growing role of non-U.S. jurisdictions in shaping the strategic direction of global mergers and acquisitions in the technology space.
As of now, Meta has not issued a formal response to the escalated review. The company previously stated that the acquisition would create jobs, spur innovation, and expand access to cutting-edge XR tools. However, with regulators in key markets signaling a more assertive stance, the fate of the deal appears increasingly uncertain.
