The two founders Beijing would not let leave the country are about to get their passports back
China is preparing to lift the exit bans imposed on Manus founders Xiao Hong and Ji Yichao, the Financial Times reported on 15 August, as the unwinding of Meta's $2 billion purchase of the AI agent startup nears completion. The pair were summoned to Beijing and barred from leaving the country while the National Development and Reform Commission examined the deal. The commission formally ordered it undone on 27 April, citing rules on outbound investment and technology export controls — four months after Meta had already closed the transaction. Manus, built by Butterfly Effect and headquartered in Singapore, told users on 11 August that it is operating as an independent company again.
Why it mattersBlocking an acquisition is one thing; holding the founders in the country while it is unpicked is another, and lifting the bans is the clearest signal yet that Beijing considers the file closed. For anyone structuring a cross-border AI deal the whole episode is now the precedent: a Singapore-headquartered company was still treated as Chinese because of who founded it, and having already closed the deal did not make it final.
▶ Related video: Beijing's Veto of Meta's Manus Deal Signals Shift in the Global AI Race | Big Take
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