regulators are examining whether AI startup Manus attempted to 'wash its models — a term used to describe Chinese‑developed AI systems being rebranded or relocated overseas to avoid domestic controls and export restrictions.



Manus co‑founders Xiao Hong and Ji Yichao. Although the AI startup has Chinese origins, it shifted its corporate structure and headquarters to Singapore amid rising regulatory scrutiny in China.


Chinese authorities have barred the co‑founders of AI startup Manus from leaving the country as regulators review Meta’s proposed acquisition of the company, in a move that underscores Beijing’s tightening grip over artificial intelligence, cross‑border tech deals and the movement of talent, multiple media reports said.

The restrictions were imposed after Meta agreed to buy Manus, an AI startup with Chinese roots that has since relocated key operations to Singapore, reports stated.

Travel curbs on Manus founders

According to The Economic Times, Chinese officials have informed Manus co‑founders Xiao Hong and Ji Yichao that they are not permitted to leave the country while the transaction undergoes regulatory review.

The founders were reportedly planning overseas travel linked to the acquisition process when the restrictions were imposed.

While no formal charges have been filed, the move effectively places the founders under an informal travel ban — a tool Beijing has increasingly used in sensitive corporate, national security or technology‑related matters.

Meta’s bet on Manus

Meta announced earlier this month that it would acquire Manus, an AI startup known for its work on large language models and autonomous agent systems. Though Manus has Chinese origins, it shifted its corporate structure and headquarters to Singapore amid rising regulatory scrutiny in China, Moneycontrol reported.

The acquisition is part of Meta’s broader push to strengthen its generative AI capabilities and compete with rivals such as OpenAI, Google, and Anthropic.

But, Manus’s Chinese links have placed the deal at the centre of geopolitical and regulatory tensions between the US and China over data security, AI sovereignty and talent migration.

Beijing’s growing concern over ‘washing’ models

According to CNBC, Chinese regulators are examining whether Manus attempted to “wash” its models — a term used to describe

Chinese‑developed AI systems being rebranded or relocated overseas to avoid domestic controls and export restrictions.

Authorities are particularly focused on whether core training, data pipelines or engineering work continued to take place in China despite the company’s Singapore base.

China has introduced sweeping AI regulations over the past two years, requiring security reviews, content controls and approvals for model deployment and overseas partnerships.

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