China may be keeping two entrepreneurs from leaving the country because of Meta. The Financial Times reported that China has barred two co-founders of artificial intelligence startup Manus from leaving the country as regulators review whether Meta’s $2 billion acquisition of the firm violated investment rules.
The FT said on Wednesday, citing people with knowledge of the matter that Manus’ chief executive Xiao Hong and chief scientist Ji Yichao were summoned to a meeting in Beijing with the National Development and Reform Commission (NDRC) this month.
“The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry,” a Meta spokesperson told Reuters in an emailed statement.
As per Reuters, following the meeting, the executives were told they could not leave China due to a regulatory review, though they are free to travel within the country, the report said.
In December 2025, Meta Platforms announced it was acquiring Manus, a Singapore‑based artificial intelligence startup known for building general‑purpose autonomous AI agents capable of completing complex tasks like coding, research, planning, and data analysis without step‑by-step human guidance. The deal — valued at around $2 billion, is one of Meta’s largest acquisitions outside of WhatsApp and Scale AI, reflecting its aggressive push into the AI landscape.
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Manus had quickly gained prominence after launching in early 2025 with tools that outpaced some competitors and supposedly amassed millions of users and more than $100 million in annual recurring revenue within months. Meta said it will continue to operate Manus’ subscription service independently while integrating its agentic AI technology into products like Meta AI, WhatsApp, Facebook, and Instagram to enhance automation and user workflows.
The acquisition aligns with Meta CEO Mark Zuckerberg’s strategy to transition from traditional chat‑style AI toward task‑completing “AI agents” that can actively work on behalf of users and businesses. However, because Manus’s founders and early operations were connected to China, the deal has drawn regulatory scrutiny, particularly from Chinese authorities reviewing technology export and investment rules.
The Meta–Manus acquisition highlights the increasing global complexity of the artificial intelligence industry, where technological innovation, corporate strategy, and geopolitical considerations intersect. Beyond the financial and operational aspects of the deal, the regulatory scrutiny from Chinese authorities underscores how cross-border transactions in cutting-edge AI are subject to national security and investment concerns. As AI capabilities become more powerful, governments are likely to pay closer attention to where expertise, talent, and sensitive technologies are located, especially when founders or teams have international ties.
For Meta, the situation illustrates both the promise and the risk of acquiring fast-growing AI startups. Integrating advanced AI agents into large-scale platforms could accelerate automation, improve user experiences, and strengthen Meta’s competitive position in the global AI market. At the same time, international regulatory constraints and political considerations may introduce delays, legal complexities, or even operational limitations that companies must navigate carefully.
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Companies working on autonomous AI systems may need to proactively engage with regulators, ensure compliance with local and international rules, and anticipate potential geopolitical friction or unforeseen policy interventions. For the public and businesses alike, it also highlights the growing influence of AI on everyday workflows, decision-making, and productivity, while simultaneously demonstrating that responsible deployment increasingly involves balancing technological advancement with legal, ethical, and geopolitical awareness.
The Meta-Manus case is a microcosm of the evolving AI ecosystem: one in which rapid innovation, strategic acquisitions, and the ultimate outcome of regulatory oversight remain in a delicate, high-stakes balance.