$2 billion. That's what Meta paid last year to acquire Manus, the Chinese AI agent startup that shot to fame with its autonomous task-completion abilities. Now Beijing is making Meta - and Manus's founders - pay a different price.
Chinese authorities have barred Manus CEO Xiao Hong and Chief Scientist Ji Yichao from leaving mainland China, according to reports from the Financial Times and Bloomberg on March 25. The two were summoned to Beijing earlier this month for questioning by the National Development and Reform Commission, China's powerful economic planning body. The focus: whether Manus illegally transferred its core AI technology out of the country before the Meta acquisition closed.
What China Is Investigating
The timeline that has regulators concerned is straightforward. Throughout 2025, Manus systematically wound down its Chinese operations, relocated its headquarters to Singapore, swapped out state-linked investors for US venture capital, and then sold itself to Meta. After the deal closed, Meta pledged to sever all ties with Manus's Chinese investors and shut down remaining operations in China entirely.
Beijing's specific concern falls under the Regulations on Technology Import and Export Administration, which requires government approval before certain categories of domestically developed technology can be transferred abroad. Regulators want to know whether Manus's AI agent intellectual property was moved to the Singapore entity without that sign-off.
A Test Case for Cross-Border AI Deals
This was always the obvious risk. China has been tightening controls on sensitive data, algorithms, and cross-border technology transfers for years. At the same time, Washington's chip export restrictions have made Beijing even more protective of the AI talent and IP it still has. Letting a top-tier AI team walk out the door to a US tech giant cuts directly against China's industrial policy goals.
The stakes go beyond this single deal. If Beijing forces a restructuring or extracts major concessions from Meta, it sends a clear message: China's regulatory reach extends to the people and technology behind a company even after a foreign acquisition is complete. That would chill future cross-border AI deals significantly.
Meta's stock took a hit on the news. The company has not commented publicly on the travel restrictions. For now, two of Manus's key technical minds are stuck in a country their company spent all of last year trying to leave.