Manus Co-Founders Restricted From Travel Amid Meta Deal Review in China

Chinese authorities have barred Manus co-founders CEO Xiao Hong and Chief Scientist Ji Yichao from leaving mainland China as Beijing scrutinizes META's $2 billion acquisition of the agentic AI startup. The co-founders were summoned to a meeting in Beijing with the National Development and Reform Commission earlier this month, where the travel restrictions were communicated.

China's Ministry of Commerce has initiated a formal review of the deal, citing potential violations of technology export control laws, data transfer regulations, and foreign investment rules. At issue is whether Manus's relocation of staff and technology from China to Singapore, prior to its sale to a U.S. firm, required an export license. Meta had announced the acquisition in December, targeting Manus's capabilities in general-purpose AI agents designed for autonomous research and task automation.

The development represents a significant escalation in U.S.-China tech tensions and could set a precedent for future cross-border AI deals. If Beijing blocks or delays the transaction, it may force Meta to reconsider its AI acquisition strategy and could chill M&A activity across the broader AI sector. Investors in Meta will be watching for resolution signals, while the situation underscores the growing regulatory complexity of international AI deals.