Chinese regulators have barred two co-founders of AI startup Manus from leaving the country while reviewing Meta’s planned acquisition of the company, according to the Financial Times. The deal is valued at about $2 billion, and the review is focused on whether it complies with Chinese investment and technology export rules.
The report said Manus CEO Xiao Hong and chief scientist Ji Yichao were summoned to Beijing this month for meetings with the National Development and Reform Commission. After the meetings, they were told they could not leave China during the review period, though they are still allowed to travel domestically. People familiar with the matter said this kind of border control is commonly used in cases tied to national security or critical technology.
Regulators are examining potential AI technology transfer
Meta disclosed its plan to acquire Manus in late December last year. At the time, market estimates placed the transaction at $2 billion to $3 billion. The case has drawn attention because AI has become a strategic sector, making cross-border acquisitions subject to heavier scrutiny than a standard corporate deal.
A Meta spokesperson told Reuters by email that the transaction is “fully compliant with applicable laws” and said the company expects the inquiry to be resolved appropriately. Manus is currently seeking legal and advisory support as the review continues.
Manus focuses on general-purpose AI agents
According to the report, Manus develops general-purpose AI agents, or AI Agents. These systems are designed to carry out complex research and automation tasks with limited instructions, with potential use cases in coding, data analysis, and office workflow automation. That combination of commercial value and technical sensitivity has put the takeover under close watch.
For Meta, Manus is seen as a key piece in its Agentic AI strategy. For Chinese authorities, the central issue is whether top AI talent and core technology could move overseas before the transaction undergoes a full review. The outcome remains uncertain.