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China Blocks Manus Founders’ Travel During Review of Meta’s $2 Billion Deal

The move signals Beijing’s resolve to police AI takeovers that move talent and technology offshore.

Overview

  • Financial Times reported that Manus co-founders Xiao Hong and Ji Yichao were questioned in Beijing in March and then told they cannot leave China, though they may travel within the country.
  • Regulators are examining whether Meta’s purchase violates Chinese rules on foreign investment, export control, and technology transfer after the Commerce Ministry said in January it would assess the deal.
  • No charges have been filed and Manus is seeking legal and consulting help as the inquiry continues, according to people cited by the FT.
  • Meta told Reuters the transaction complied with applicable law and said it expects an appropriate resolution to the review.
  • Manus moved its headquarters and core team to Singapore but kept Chinese affiliates, a setup that complicates jurisdiction and feeds Beijing’s concern about prized AI skills and IP leaving the country.