Chinese authorities have banned two of the co-founders of Manus, a start-up specializing in artificial intelligence agents recently acquired by Meta, from leaving the country. The measure targets Xiao Hong, general director, and Ji Yichao, chief scientist, summoned to Beijing in early March by the National Development and Reform Commission (NDRC), according to the Financial Times. At the end of this exchange, the two leaders were notified of a restriction on leaving the territory, without any formal charge being made at this stage.
The takeover of Manus by Meta, finalized at the end of 2025 for an amount of $2 billion, is also the subject of a review by the Chinese Ministry of Commerce, particularly with regard to export control systems.
Founded in China in 2022 under the name Beijing Butterfly Effect Technology, the company made its first developments on Chinese territory, then structured its activities around an entity based in Singapore, Butterfly Effect Pte., where the headquarters and part of the teams are now located. However, several legal entities remain in China, notably in Beijing and Wuhan, maintaining an operational and regulatory link with the territory.
This arrangement, common in the technological ecosystem, historically allows companies to combine local development, international financing and offshore structuring.
The case comes in a context of very strong tensions with the United States. If any irregularities identified would mainly relate to reporting obligations, which legally does not generally result in heavy sanctions. The decision to restrict the travel of founders is a very clear message addressed to all Chinese tech entrepreneurs.
For Meta, the group affirms that the transaction was conducted in compliance with the applicable regulatory frameworks and indicates that it anticipates an “appropriate” resolution of the situation. The acquisition of Manus was part of a broader strategy to strengthen capabilities in artificial intelligence, particularly in Asia, with Singapore as a regional anchor.
A dismantling would involve complex arbitrations on intellectual property, teams and infrastructures.
At this stage, no final decision has been announced by the Chinese authorities. The situation of the founders of Manus, authorized to travel within the country but deprived of leaving the territory, nevertheless testifies to a closer supervision of this type of operations. It could, ultimately, influence the structuring and financing strategies of technology companies operating between China and international markets.
