Chinese authorities have barred two co-founders of the AI startup Manus from leaving the country. Regulators are examining whether Meta Platforms’ $2.5 billion acquisition of the Singapore-registered firm broke rules on tech exports, outbound investment, and national security.
- Chinese authorities bar Manus co-founders Xiao Hong and Yichao Ji from leaving the country following a probe by the NDRC.
- China investigates the $2.5 billion acquisition of Manus by Meta Platforms for potential violations of national technology export control rules.
- The probe tests if relocating IP to Singapore effectively bypasses Beijing’s oversight of interactive AI systems and outbound investment flows.
NDRC Summons and Exit Restrictions
Manus CEO Xiao Hong and chief scientist Yichao “Peak” Ji met with officials from China’s National Development and Reform Commission (NDRC) during the week of March 13. Officials informed the executives they’re prohibited from leaving China, though they remain free to travel domestically. People with knowledge of the matter confirmed the restrictions to the Financial Times and New York Times.
Meta’s transaction complied fully with applicable law, spokesman Andy Stone told the New York Times on March 17. Stone stated the Manus team’s deeply integrated into Meta and anticipated an appropriate resolution to the inquiry.
The $2.5 billion acquisition closed on December 30, 2025. China’s Ministry of Commerce (MOFCOM) launched an investigation eight days later, specifically targeting potential violations of technology export controls for interactive AI systems. No formal charges have been filed.
Scrutiny of “Singapore Washing” Tactics
Singapore-incorporated Butterfly Effect Pte Ltd developed Manus, but the startup’s early work occurred through Beijing-based entities founded in 2022. The University of Technology Sydney noted in January 2026 that the company retained a Beijing-based parent until mid-2025. Material connections to Chinese jurisdiction remained during key development phases.
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👉 Submit Your PRBeijing’s regulators are examining whether the relocation of talent and IP to Singapore effectively circumvented approval requirements. Temple University professor Roselyn Hsueh described the strategy as “Singapore washing.” This involves Chinese companies attempting to scrub their identity by moving to a third country, a tactic previously linked to Shein and TikTok.
Heightened scrutiny may serve as leverage ahead of U.S.-China trade negotiations. Shengyu Wang of the Asia Society Policy Institute told the NYT the move also deters other Chinese AI researchers from considering similar cross-border paths.
Chain Street’s Take
Manus represents a structural stress test for the offshore AI exit model. Beijing’s challenge targets economic substance rather than legal form. Regulators are questioning whether the talent and core IP ever truly left Chinese jurisdiction.
The exit bans on Xiao Hong and Yichao Ji apply maximum pressure on Meta to engage directly with Chinese authorities. It’s a precise instrument that sends a clear signal to the broader ecosystem. The resolution of this case: whether through a quiet settlement or forced technology reversal: will set the template for all future cross-border AI acquisitions.
“Singapore washing” offers less shelter than many assumed. Beijing is now policing substance over structure.
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Institutional-grade structural analysis for this article.
