Post by : Shakul

Chinese authorities have restricted two top executives of AI startup Manus from leaving the country as regulators intensify scrutiny of its planned acquisition by Meta, according to reports.

The move affects Manus CEO Xiao Hong and chief scientist Ji Yichao, who were reportedly summoned to a meeting in Beijing by the National Development and Reform Commission. Following the meeting, they were informed they could not leave China during the ongoing regulatory review, though domestic travel remains permitted.

The development comes as Chinese authorities examine whether the proposed deal violates foreign investment and national security regulations. The country’s commerce ministry had earlier indicated it would assess the transaction.

Meta announced plans in December to acquire Manus, a Singapore-based AI firm known for developing advanced “digital employee” systems capable of performing tasks such as research, automation, and decision-making with minimal human input. While official financial details were not disclosed, the deal has been widely valued at around $2 billion.

The case highlights growing tensions between global tech expansion and China’s strict regulatory framework governing data security and foreign acquisitions. Chinese regulators have increasingly tightened oversight of technology deals, especially those involving artificial intelligence and cross-border data flows.

Manus is reportedly seeking legal and consulting support to address the situation as uncertainty around the deal continues. Neither company has issued an official statement in response to the latest developments.

The incident underscores the challenges multinational tech companies face when navigating China’s complex regulatory environment, particularly in sensitive sectors like AI, where national security concerns often play a central role.

#Asia News #Tech News #Newsible Asia