Chinese authorities barred two co-founders of AI startup Manus — CEO Xiao Hong and chief scientist Ji Yichao — from leaving the country. Both live in Singapore, but in early March they were summoned to Beijing for a meeting with the National Development and Reform Commission (NDRC). After the meeting they were told: no leaving China, domestic travel is allowed.
The reason — a review of Manus's sale to Meta for $2-3 billion, announced in December 2025. Regulators are investigating whether the deal violated technology export control laws and foreign investment rules. The Ministry of Commerce has been conducting the review since January 2026.
Manus grew out of Beijing-based Butterfly Effect (founded 2022), but in 2025 moved HQ to Singapore and laid off most of the Beijing office (the industry calls this singapore-washing — formal relocation to bypass geopolitical restrictions). Beijing considers that technologies developed by Chinese engineers in China still fall under its jurisdiction.
Meta claims the deal complies with all applicable laws. But the outcome remains open — from conditional approval to full cancellation.
Honestly, wild stuff. You sell your company for three billion dollars, fly in for a regulator meeting, and don't fly back.