Meta's Acquisition Of Chinese AI Startup Blocked By Beijing Amid Tech War

2026-04-03 13:00
Manus co-founders Xiao Hong and Ji Yichao have been placed under exit restrictions in China following questioning related to Meta's acquisition bid. (AP)
Manus co-founders Xiao Hong and Ji Yichao have been placed under exit restrictions in China following questioning related to Meta's acquisition bid. (AP)

When U.S. technology giant Meta announced its $2 billion acquisition of Chinese artificial intelligence startup Manus, Beijing swiftly intervened. The deal would have integrated what some observers dubbed "China's DeepSeek" directly into Meta's expanding portfolio.

Manus co-founders Xiao Hong (肖弘) and Ji Yichao (季逸超) were summoned by China's National Development and Reform Commission this month. Subsequently placed under strict exit bans, both executives remain free to move within China but cannot leave.

Meanwhile, Beijing-based private equity firm Zhiyuzhishan Investment drew widespread financial attention by announcing unconventional hiring practices for core roles. The firm is actively recruiting candidates as young as 18 who possess only a high school diploma.

The only stringent requirement for these young applicants is demonstrating exceptional proficiency with advanced artificial intelligence tools. These simultaneous developments highlight Beijing's aggressive strategy to block top AI talent from leaving while casting a wide recruitment net. (Related: Taiwan Condemns Chinese Sanctions Against Japanese Lawmaker Following Visit Latest

Meta's Massive Deal Triggers Regulatory Scrutiny

Xiao graduated from Huazhong University of Science and Technology in 2015 before successfully founding Nightingale Technology. His younger co-founder, Ji, drew early national attention at 18 by developing the Mammoth browser and appearing on Forbes China's cover.

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