China has barred two co-founders of Manus AI startup from leaving the company amid an ongoing probe into its $2 billion acquisition by Meta, reported Financial Times. The move comes as authorities review whether the deal violated foreign direct investment rules and national security rules. As per the report, the founders – Xiao Hong and Ji Yichao were summoned to a meeting in Beijing with the National Development and Reform Commission this month. This situation underscores China’s increasing unease about sharing cutting-edge technology with foreign entities, particularly in areas deemed sensitive, such as artificial intelligence.No formal charges have been filed so far, and the investigation remains ongoing, the report stated.
China’s probe into Meta’s $2 billion deal
Chinese authorities have been reviewing Meta’s acquisition of Manus since January. The agreement, revealed in December 2025, is currently under review to assess any possible national security concerns and its adherence to local regulations governing technology transfer and foreign investments. Meta subsequently unveiled the purchase, positioning it within their broader strategy to develop AI agents—systems engineered to handle intricate tasks autonomously.The case reflects broader concerns in China about losing key technology to foreign rivals, especially in fast-growing areas like artificial intelligence. Manus had quickly gained global attention and was seen as a success story among Chinese startups.Its rapid growth and eventual acquisition by Meta had inspired other AI entrepreneurs in the country. Meta’s Manus deal was also seen as a rare instance of a major US tech company acquiring an Asian AI startup.
Manus AI deal among Meta’s biggest buy
Meta’s Manus AI acquisition ranked behind only its $19 billion purchase of WhatsApp in 2014 and its up to $15 billion investment in Scale AI in early 2025. Manus has a staff of around 100 employees and it was once hailed as the ‘next DeepSeek’.
