China Blocks Manus AI Founders Amid Meta Deal Review

China Blocks Meta’s Acquisition of AI Firm Manus, Restricts Founders’ Travel

Chinese regulators are blocking the co-founders of artificial intelligence startup Manus from leaving the country as they review Meta’s reported $2 billion acquisition of the firm, according to reports from the Financial Times, and Reuters. The move signals increasing scrutiny of foreign investment in China’s rapidly developing AI sector and raises questions about the future of the deal.

Xiao Hong, Manus’s chief executive, and Ji Yichao, its chief scientist, were reportedly summoned to a meeting earlier this month with officials from the National Development and Reform Commission (NDRC) in Beijing. Following the meeting, they were informed they were prohibited from leaving China pending the outcome of the regulatory review, though they are permitted to travel within the country.

The restrictions come as China increasingly seeks to control the outflow of sensitive technologies and data, particularly in the field of artificial intelligence. The government has been tightening regulations surrounding cross-border data transfers and requiring security clearances for technology deals involving foreign companies. This action regarding Manus appears to be a direct application of these policies.

Meta announced its intention to acquire Manus in December 2025, with sources at the time valuing the deal between $2 billion and $3 billion. Manus specializes in developing general-purpose AI agents designed to function as digital employees, automating tasks like research and data analysis with minimal human intervention. The acquisition would have significantly bolstered Meta’s AI capabilities, particularly in the area of automation and virtual assistance.

A Meta spokesperson stated in an emailed statement to Reuters, “The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry.” Manus and China’s Ministry of Public Security have not yet publicly commented on the situation.

The Financial Times reported that China’s commerce ministry had previously indicated it would assess and investigate Meta’s acquisition of Manus. This latest development, however, represents a significant escalation, moving beyond a simple review to actively restricting the movement of key personnel involved in the deal.

The situation with Manus is the latest example of growing tensions between China and the West over technology and investment. While China remains an attractive market for foreign companies, its increasingly assertive regulatory environment and concerns over national security are creating significant hurdles for cross-border deals. The blocking of the Manus co-founders’ travel underscores the risks associated with investing in China’s tech sector, even as the country continues to innovate and attract global attention.

Observers will be watching closely to see how the Chinese government resolves this situation. A prolonged delay or outright rejection of the Meta-Manus deal could have broader implications for foreign investment in China’s AI industry and signal a further tightening of controls over technology transfers. The outcome will likely set a precedent for future acquisitions and collaborations in this strategically important sector.