Beijing has barred two executives of Chinese AI startup Manus from leaving the country while regulators review Meta's acquisition of the company, according to reporting by the Financial Times.
Xiao Hong, Manus's CEO, and Ji Yichao, the company's chief scientist, are now subject to exit bans—a tool increasingly deployed by Chinese authorities to retain leverage over tech executives amid foreign investment deals.
Manus had gained prominence in China's AI sector by claiming to have developed an autonomous AI system capable of purchasing property, programming video games, analyzing stocks, and planning travel. The startup positioned itself as more than "just another chatbot or workflow," emphasizing it had built "a completely autonomous agent."
Meta announced its acquisition of Manus in December 2025 to strengthen its AI capabilities. Following the announcement, China's commerce ministry indicated it would examine whether the transaction complied with domestic laws and regulations.
In a statement, Manus leadership said the acquisition would enable the company to "build on a stronger, more sustainable foundation without changing how Manus works or how decisions are made." That assurance now appears complicated by the exit bans.
The exit ban pattern
The use of exit bans has become more frequent in recent years as Beijing tightens oversight of technology transfers and foreign acquisitions involving Chinese firms, particularly in sensitive sectors like artificial intelligence. These bans function as leverage during regulatory reviews and negotiations, effectively keeping key personnel within the country's jurisdiction.
For foreign companies acquiring Chinese AI startups, this creates a new risk dimension. The founders who built the technology and understand its architecture cannot leave to integrate with the acquiring company or assist in the transition.
Implications for foreign investment
The Manus case marks the latest friction point in what observers describe as a tech Cold War becoming increasingly personal. While tariffs and export controls operate at the macro level, exit bans affect individual executives, creating uncertainty for both acquisition targets and acquirers.
