Chinese authorities have barred the co-founders of AI startup Manus from leaving the country while they review Meta’s $2 billion acquisition of the firm.
The Financial Times reports that Manus CEO Xiao Hong and Chief Scientist Ji Yichao were summoned to a meeting in Beijing with the National Development and Reform Commission this month. No formal charges have been filed, but the founders face an exit ban as officials check if the deal breaks rules on foreign investment, technology exports, and national security.
Manus builds autonomous AI agents that handle tasks like coding, research, and workflows with little human help. The company hit over $100 million in annual recurring revenue before the sale, per industry reports cited by Meyka. Meta announced the purchase in December 2025 as part of its push into AI agents, and it’s under scrutiny since January.
Why China stepped in
Officials worry the deal lets advanced AI tech developed in China flow to a U.S. giant without approval. The Times of India, drawing from the same FT story, notes this reflects Beijing’s caution on sharing sensitive AI with foreign rivals. Manus had about 100 employees and was called the “next DeepSeek” for its quick rise.
- Review focuses on tech transfer rules.
- Checks for national security risks.
- Examines foreign direct investment compliance.
This move shows China tightening controls on outbound AI deals, which could slow cross-border tech buys and raise hurdles for global AI growth.
