Manus Founders Barred From Leaving China Amid Meta’s $2B Acquisition
Summary
Chinese authorities have barred two Manus co-founders from leaving the country, heightening scrutiny over Meta’s $2 billion acquisition of the agentic AI startup. CEO Xiao Hong and Chief Scientist Ji Yichao are free to move within China but cannot travel internationally.
A Quick Timeline
- Dec 2024 — Meta announced its acquisition of Manus, which develops general-purpose AI agents capable of performing tasks like research and automation with minimal prompting.
- Early 2025 — China’s Ministry of Commerce launched a formal review under export control and technology transfer rules.
- March 2025 — Xiao Hong and Ji Yichao were summoned to a meeting in Beijing with the NDRC (National Development and Reform Commission) and told they cannot leave China.
Why China Is Doing This
Regulators are examining whether the core AI agent intellectual property was moved to Manus’s Singapore entity without the required government approvals, specifically under regulations that require sign-off for transferring certain categories of technology developed in China. The concern is that Manus wound down its Chinese operations, relocated headquarters to Singapore, and replaced state-linked investors with US VC, a strategy designed to present itself as a Singapore-based entity for the Meta deal.
Authorities are comparing this to TikTok, citing what Beijing calls “Singapore-washing,” using Singapore as a legal front to escape Chinese regulatory oversight. There’s also speculation that enterprise customers are already moving away from Manus, citing data privacy concerns, creating direct revenue risk for a deal with a reported revenue run rate exceeding $125 million.
Current Situation
Manus is actively seeking legal and consulting help to resolve the matter. Meta responded saying “the transaction complied fully with applicable law” and they anticipate an appropriate resolution. With both founders unable to travel, integration with Meta’s global teams is effectively stalled.
Sources: Financial Times/ Reuters
https://www.ft.com/content/d9123d9d-c807-41d6-8a17-80ff1111834a