In a major escalation of the technological “cold war” between Washington and Beijing, Chinese authorities have imposed an indefinite exit ban on the founders of Manus AI, the Singapore-based startup recently acquired by Meta for an estimated $2 billion.
The move targets CEO Xiao Hong and Chief Scientist Ji Yichao, who were reportedly summoned to a meeting with the National Development and Reform Commission (NDRC) in Beijing earlier this month. Following the meeting, the executives were informed they are prohibited from leaving mainland China while regulators review the legality of the Meta acquisition.
1. The Investigation: “Singapore-Washing” Allegations
At the heart of the probe is whether Manus AI—founded by Chinese engineers in China before relocating its headquarters to Singapore in 2025—violated strict technology export controls.
- The Allegation: Regulators are investigating if “core AI intellectual property” developed on Chinese soil was transferred to a foreign entity (Meta) without the required government sign-off.
- The “Singapore-Washing” Concern: Beijing is increasingly scrutinizing startups that reincorporate in Singapore to distance themselves from their Chinese origins to facilitate Western exits.
- Legal Framework: The NDRC is invoking the Regulations on Technology Import and Export Administration, which treats advanced “agentic AI” (AI that can act autonomously) as a sensitive strategic asset.
2. Impact on the Meta Acquisition
The $2 billion deal, announced in December 2025, was Meta’s most aggressive move to capture the “AI Agent” market. The exit bans place the integration of this technology in a state of high-stakes limbo.
| Aspect | Status (March 2026) |
| Founders | Restricted to Mainland China; free to move domestically but cannot fly to Singapore or the U.S. |
| Meta’s Position | States the transaction “complied fully with applicable law” and anticipates a resolution. |
| Operations | Manus continues to operate its standalone service, but the transfer of key leadership to Meta is blocked. |
| Risk | Analysts warn that Beijing could theoretically demand the deal be unwound or the technology localized. |
3. Geopolitical Context: The “Second DeepSeek”
Manus gained global prominence in early 2025 as the “world’s first general-purpose AI agent,” outperforming competitors on several autonomous task benchmarks. Because it was dubbed the “second DeepSeek” for its efficiency and Chinese origin, its migration to a U.S. giant like Meta became a matter of national pride and security for Beijing.
- China’s Stance: View AI as a cornerstone of national strategy; seeks to prevent the “drain” of top-tier talent and algorithms to Silicon Valley.
- U.S. Stance: The Trump administration has framed such acquisitions as essential to maintaining American AI dominance over China.
4. Why Exit Bans?
While the executives have not been formally charged with a crime, China frequently uses exit bans as a tool of “regulatory leverage” during active investigations.
“This is the first time Beijing has used physical exit bans to stymie a multi-billion dollar deal with a U.S. tech firm,” noted the Washington Post. “It sends a clear message to other founders: Singapore is no longer a clean break.”
