Chinese regulators have barred two co-founders of artificial intelligence startup Manus from leaving the country as part of an ongoing review into Meta’s proposed acquisition of the firm, according to a report by the Financial Times.
CEO Xiao Hong and Chief Scientist Ji Yichao were summoned earlier this month to a meeting in Beijing with officials from the National Development and Reform Commission, China’s powerful macroeconomic agency, the report said.
Following the meeting, both executives were informed they would not be permitted to leave China while the regulatory review is underway, although they remain free to travel domestically. Manus is now seeking legal and consulting support to navigate the investigation.
The scrutiny centres on whether Meta’s acquisition of Manus—announced in December—complies with China’s rules governing foreign investment and cross-border transactions. Financial terms were not disclosed, but a person familiar with the deal previously told Reuters it valued Manus at between $2 billion and $3 billion.
Meta said the transaction adhered to applicable laws and expressed confidence in a resolution. “The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry,” a spokesperson said.
China’s commerce ministry had earlier indicated it would assess the deal, underscoring heightened regulatory oversight of foreign acquisitions involving strategically sensitive technologies such as artificial intelligence.
Manus develops general-purpose AI agents designed to function as digital employees, capable of carrying out tasks including research and automation with minimal human input. The deal highlights growing global competition for advanced AI capabilities, even as regulatory scrutiny intensifies.
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