China Blocks Manus AI Founders During Meta's $2 Billion Acquisition Review

The founders of Manus AI have been barred from leaving China as the government reviews the $2 billion acquisition by Meta. This development came to light on Wednesday (March 25, 2026), according to the Financial Times.

CEO Xiao Hong and Chief Scientist Ji Yichao were summoned for a meeting in Beijing with the National Development and Reform Commission (NDRC) earlier this month. After the meeting, regulators informed them that the two executives, who reside in Singapore, cannot leave the country for now, but are free to move around internally.

Manus AI was founded in China in 2022 and quickly gained traction with its AI agents capable of performing complex tasks autonomously. In 2025, the company relocated its headquarters to Singapore and finalized the sale to Meta in late December. The American tech giant has already begun integrating the technology into products like Facebook, Instagram, and WhatsApp. However, the operation still requires final approval from Chinese authorities.

The focus of the review is to determine if there were any violations of foreign direct investment and technology export control rules. Beijing has tightened control over AI startups with Chinese roots that attempt to move abroad, a strategy dubbed "Singapore washing." Meta has publicly stated that there will be no more Chinese involvement in the company and that Manus will cease operations in China.

Behind this, the case reflects growing geopolitical tensions in the artificial intelligence sector. Strategic talents and technologies have become bargaining chips between Washington and Beijing, and the Chinese government does not want to see "green shoots" of AI escaping without oversight.

The acquisition is still under review by the Ministry of Commerce. Meanwhile, Meta continues to integrate Manus's AI agents, but the full rollout schedule may face delays depending on the outcome of the review in Beijing.