China Bars Manus Co Founders Amid Meta Deal Review
China has stopped two co founders of artificial intelligence startup Manus from leaving the country while regulators examine a major acquisition by Meta. Authorities are assessing whether the deal breached investment rules, according to a report.
Executives Summoned For Regulatory Review
Chinese officials called Manus chief executive Xiao Hong and chief scientist Ji Yichao to a meeting in Beijing earlier this month. During the meeting, the National Development and Reform Commission reviewed details of the transaction. Following this discussion, authorities informed both executives that they could not leave China while the investigation continues.
However, they can still travel within the country. This restriction remains in place as regulators continue to assess compliance with existing laws. Meanwhile, the situation has added uncertainty around the deal’s progress.
Manus Seeks Legal Support
Manus has started working with legal and consulting experts to address the regulatory concerns. The company aims to resolve the matter quickly and ensure that the transaction meets all requirements. At the same time, the development highlights the growing scrutiny surrounding cross border technology deals.
A spokesperson for Meta stated that the transaction followed all applicable laws. The company also expressed confidence that the issue would reach an appropriate resolution. However, Chinese authorities have not yet provided further clarification on the timeline of the review.
Deal Faces Increased Scrutiny
Meta announced its plan to acquire Manus in December. The startup develops general purpose artificial intelligence agents that can function as digital workers. These systems perform tasks such as research and automation with minimal input.
Although the financial terms were not officially disclosed, earlier information suggested the deal valued Manus between two and three billion dollars. This valuation reflects the increasing importance of advanced AI technologies in global markets.
Earlier this year, China’s commerce ministry confirmed that it would review the acquisition. Since then, regulatory attention has intensified. As a result, the current restrictions on Manus executives signal a more cautious approach by authorities.
At present, both companies continue to await further updates from regulators. The outcome of the review will likely influence how similar deals proceed in the future.
With inputs from Reuters