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[BEIJING] Chinese authorities have barred two Manus co-founders from leaving the country, the Financial Times reported, heightening scrutiny over Meta Platforms’ 2025 acquisition of the fast-rising agentic AI startup for US$2 billion. Xiao Hong and Ji Yichao were summoned this month to a meeting in Beijing with the National Development and Reform Commission, the country’s powerful economic planner, the FT said, citing three people with knowledge of the matter. The pair, who are based in Singapore, were questioned about potential violations of foreign direct investment rules and then told they could not leave China, the FT reported.   Beijing has since January been investigating whether Meta’s takeover violated regulations, with potential national security implications. That review remains in its early stages and regulators might ultimately choose not to intervene. The case highlights Beijing’s broader concerns about the loss of valuable technology to a geopolitical rival, particularly in strategic sectors such as AI. At the same time, Manus has been hailed as a success story and role model for local entrepreneurs. Its rapid ascent on the global stage – from achieving US$100 million in annualised revenue in mere months to its landmark acquisition by Meta – inspired a generation of Chinese AI founders to pursue a similar global trajectory.   No charges have been brought and Manus is seeking legal help to resolve the matter, the FT said, citing a person with knowledge of the move. One extreme outcome would be to unwind the transaction, the newspaper said. A representative of Manus did not immediately respond to an email seeking comment. Manus was founded in 2022 but quickly shifted its core team and headquarters to Singapore, a relocation that coincided with a financing round led by prominent Silicon Valley venture capital firm Benchmark Capital. That investment drew questions from US lawmakers. Manus affiliates such as Beijing Butterfly Effect Technology remain registered within the country, complicating the picture. In January, China’s commerce ministry said it will work with other agencies to assess whether Meta’s buyout is consistent with Chinese laws on “export control, technology import and export, and overseas investment”.     Beijing has in recent years aggressively pushed domestic firms to develop technology to replace American software and circuitry, including in artificial intelligence. Much of that effort however has focused on fundamental hardware such as AI accelerators and other semiconductors. The Meta deal marked a rare US acquisition of an Asian tech company and the latest multibillion-US dollar AI bet from chief executive officer Mark Zuckerberg. Meta announced the acquisition last December, touting Manus as a boost to its efforts with AI agents: autonomous systems that can carry out multi-step tasks without a human’s constant direction. BLOOMBERG

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