- Chinese authorities have barred Manus co-founders Xiao Hong and Ji Yichao from leaving the country following meetings with economic regulators.
- The move is linked to an investigation into Meta’s $2 billion acquisition of AI startup Manus in 2025.
- Authorities suspect the deal may violate foreign investment regulations and pose national security risks.
- Manus achieved rapid growth, reaching $100 million in annual recurring revenue within just a few months.
- The startup moved its headquarters to Singapore and received funding from Benchmark Capital, raising concerns from both the US and China.
- Some Manus legal entities remain registered in China, making the legal structure complex.
- China is reviewing factors such as technology export controls and outbound investment related to the deal.
- Meta asserts that the transaction fully complies with the law and expects to reach an appropriate solution with regulators.
- An extreme scenario could involve the total cancellation of the acquisition.
- The incident reflects China’s concerns over strategic AI technology falling into the hands of geopolitical rivals.
📌 The Chinese government has banned Manus co-founders Xiao Hong and Ji Yichao from leaving the country after meetings with economic regulators. This move is related to the investigation into Meta’s $2 billion acquisition of the AI startup Manus in 2025. The incident highlights growing US-China tech tensions, particularly in the field of generative AI. With a $2 billion deal and a startup hitting $100 million in revenue in months, Manus has become a strategic focal point. The travel restrictions on the founders indicate that China is tightening its grip on technology. The outcome of the investigation could significantly impact global cross-border AI transactions.
