Chinese authorities have banned two co-founders of Manus from leaving China, the report said. Financial Timesincreasing scrutiny over Meta Platforms Inc.’s 2025 acquisition of the AI agent startup for $2 billion.
Xiao Hong and Ji Yichao were summoned this month to a meeting in Beijing with the National Development and Reform Commission, the country’s powerful economic planning body, the official said. FTciting three people with knowledge of the matter. The pair, who live in Singapore, were questioned about possible violations of foreign direct investment rules and then told they could not leave China, according to the newspaper.
Since January, Beijing has been investigating whether Meta’s purchase violated regulations, with possible national security implications. The analysis is still at an early stage and regulators may ultimately decide not to intervene.
The case highlights Beijing’s broader concern about losing valuable technology to a geopolitical rival, especially in strategic sectors like artificial intelligence. At the same time, Manus was being celebrated as a success story and a model for local entrepreneurs.
The company’s rapid rise on the global stage — from achieving US$100 million in annualized revenue in just a few months to its billion-dollar acquisition by Meta — inspired a generation of Chinese AI founders to seek a similar trajectory abroad.
No charges have been filed to date, and Manus is seeking legal help to resolve the situation, reported the FTciting a person with knowledge of the movement. In an extreme scenario, the transaction could be undone, the newspaper said.
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“The transaction fully complied with applicable laws,” said a Meta spokesperson. “We hope for a suitable resolution to the investigation.”
Founded in 2022, Manus quickly moved its core team and headquarters to Singapore, in a move that coincided with a funding round led by Benchmark Capital, a leading Silicon Valley venture capital manager. This investment raised questions among American parliamentarians.
Manus affiliates, such as Beijing Butterfly Effect Technology, remain registered in China, which makes the picture more complex. In January, the Chinese Ministry of Commerce said it would work with other agencies to assess whether Meta’s purchase complies with local laws on “export control, import and export of technology and overseas investment.”
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In recent years, Beijing has pressured domestic companies to develop technology capable of replacing American software and components, including in AI. Much of this effort, however, has focused on basic hardware, such as AI accelerators and other semiconductors.
The deal with Meta marked a rare acquisition of an Asian technology company by an American group and added to CEO Mark Zuckerberg’s billion-dollar bets on artificial intelligence.
Meta announced the purchase last December, presenting Manus as a reinforcement for its efforts with AI agents — autonomous systems capable of performing tasks in multiple steps without the need for constant supervision from a human.
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