Beijing has barred Manus AI cofounders Xiao Hong and Ji Yichao from leaving the country following Meta’s blockbuster $2B acquisition of the VR glove tech firm. Authorities are scrutinizing the deal for potential IP export violations and national security risks, routing funds through Singapore.
Manus, known for cutting-edge hand-tracking VR hardware, sold to Meta amid fierce US-China tech rivalry. The purchase bolsters Meta’s Quest ecosystem, but China views the tech transfer as a red line.
Exit restrictions are routine for strategic tech sales abroad—CCP prioritizes control over AI/VR outflows. No charges filed yet; founders remain in China as reviews drag on.
Meta stock dipped 2% on news; analysts eye delays in haptics rollout. Signals tightening capital controls as tensions escalate.
