China Bar Manus Co-Founders From Leaving Country Amid Meta's $2.5 Billion Deal Review: Report
China Bar Manus Co-Founders From Leaving Country Amid Meta's $2.5 Billion Deal Review: Report
Mohd HaiderSat, March 28, 2026 at 4:31 AM UTC
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The Chinese government has reportedly restricted the co-founders of Manus from leaving the country as it reviews the company's $2.5 billion acquisition by Meta Platforms.
The two co-founders of Manus, Xiao Hong and Ji Yichao, were summoned earlier this month for a meeting with the National Development and Reform Commission in Beijing to discuss the acquisition, according to The Wall Street Journal report.
Following the meeting, officials instructed the Singapore-based executives not to leave China until further notice, citing an ongoing review.
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Relocation And Ownership Scrutiny
The acquisition of Manus, which develops an advanced AI agent, by Meta Platforms has drawn scrutiny from Chinese regulators. The company's actions, including relocating most of its China-based employees to Singapore, have raised concerns that other Chinese firms might follow suit without Beijing's approval.
Meta did not immediately respond to Benzinga's request for comment.
Chinese regulators are examining the ownership changes and the relocation of operations to Singapore by Beijing Butterfly Effect Technology, the company behind the early versions of Manus. Manus, run by Singapore-based Butterfly Effect, was partly developed by its Beijing sister company, founded in 2022.
Meta earlier assured that there will be no remaining Chinese ownership interest in Manus after the acquisition and that the startup will cease its services and operations in China.
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Export Licensing Scrutiny
The Chinese government’s scrutiny of the Manus acquisition by Meta is not new.
In January, it was reported that the Chinese Ministry of Commerce was assessing whether Manus' staff and technology relocation to Singapore, followed by the sale to Meta, requires an export license under Chinese law.
Meta’s acquisition of Manus was part of its larger strategy to leverage its substantial AI spending into a larger business. The company valued Manus at more than $2 billion and moved quickly to finalize the agreement.
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This article China Bar Manus Co-Founders From Leaving Country Amid Meta's $2.5 Billion Deal Review: Report originally appeared on Benzinga.com
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