Comment by wxw
16 hours ago
> After a $75 million fundraising round led by U.S. venture firm Benchmark in May 2025, Manus shut its China offices in July, laying off dozens of employees. It then moved its operations to Singapore.
> It was not immediately clear on what grounds China was seeking the annulment of a deal involving a Singapore-based company and how, if at all, a completed acquisition transaction would be unwound.
> Manus' two co-founders, CEO Xiao Hong and chief scientist Ji Yichao, were summoned to Beijing for talks with regulators in March and later barred from leaving the country, five sources familiar with the matter said.
Will be interesting to see how this plays out.
The third quote seems to invalidate the second, no? Under the "grounds" that key people are currently physically in China, and as such, the Chinese government can coerce them to do whatever it wants.
Though I suppose if those two did not have majority ownership of the company, the actual (former) majority owners can refuse to unwind the sale regardless of their wishes. Company might be worth quite a bit less to Meta without those key people, though. Either way, I assume the two people stuck in China won't be seeing a dime of that sale price, which is not cool.
(This is regardless of my feelings about Meta owning more AI capability...)
The two cofounders will not be able to work for Meta. Probably it will be complicated to distribute Manus in Hong Kong, possibly Singapore too.
But Manus's IP was already transferred and in any case Meta is not legally doing business in China, so Manus will still live on, possibly get rebranded.
The co-founders have roots in China. As such it's already a done deal that China will get its way.
Dealt with is the founders / team / investors losing out of the $2B. That’s the punishment from China.
Somehow I think there is a real possibility more will happen.
Barring them from leaving the country feels a bit sinister for people who haven't been accused of committing any crimes.
I don't claim to know what's going on outside of what's being reported, but I'm reminded of other individuals who have "stepped out of line" (as determined by Beijing) and were also either barred from the country or mysteriously disappeared for weeks or months at a time only to randomly reappear at some point singing a different tune.
>>> Barring them from leaving the country feels a bit sinister for people who haven't been accused of committing any crimes.
This is standard operating procedure for the CCP. They are a truly ruthless, sinister group who have no scruples about ensuring compliance and using leverage on behalf of Chinese interests. Just look at what happened to Jack Ma.
24 replies →
Jack Ma comes to mind: https://en.wikipedia.org/wiki/Jack_Ma#During_tech_crackdown
Usually they just threaten the family that stayed in china to enforce compliance. As in visit by police and do a video call. Good old socialist playbook. Guess the CEOs were to workaholic ti be threatened with the mafia methods.
[flagged]
> Barring them from leaving the country feels a bit sinister for people who haven't been accused of committing any crimes
I don't think it's actually that uncommon in China, especially with high profile people. To China's credit, we often bar people from leaving the country if they're charged with a crime but not convicted of anything. While it's certainly scary and authoritarian, I think it's par for the course in China. Most companies have some amount of CCP representation in them, either on the board or some level of management.
16 replies →
> Barring them from leaving the country feels a bit sinister for people who haven't been accused of committing any crimes.
Pure speculation on my part, but i would be surprised if China didn't have our equivalent of export control laws, not difficult to fabricate a crime and pin it on founders.
10 replies →
> Barring them from leaving the country feels a bit sinister for people who haven't been accused of committing any crimes.
Feels like Guantanamo Bay all over again.
7 replies →
Their mistake was not reading the tea-leaves. Just as Youxia Zhang, Weidong He, etc. Although to be fair the party elders and generals were in a no-win situation. They could not just "leave."
They were likely baited to come in with some pretense and once they had them, they would not and will not let them get away.
Looks like the issue will be “dealt with” though we don’t know how exactly.
I suspect this is more of a warning shot to others attempting the same playbook ("Singapore-washing", as I've heard folks call it): the state is watching, and shifting geopolitics means it's in their interest to retain successful talent and entities at home rather than let opposition have them.
If anything, I'm genuinely surprised it took them this long. America's been doing this for decades without much in the way of pushback, so China must feel very confident in its position to use such tactics.
I don't know if America has done anything quite like this. The example I'm looking for is where a company starts in the US but leaves and incorporates outside the US and then the US attempts to block acquisition by a foreign company. Also, the enforcement mechanism while vague seems un-American. America might tax the company upon exit but it wouldn't hold the founders hostage in America. If you have examples I'd be curious.
You don't need to incorporate in the US for this to happen to you. You should look up what happened to Marc Lasus after he founded Gemplus (spoiler, he's on social security while the company the CIA stole from him has $3b revenue) or how Frédéric Pierucci was taken hostage to force the sale of France's nuclear reactors to General Electric. I assume the US does this to all the other countries too.
1 reply →
Being stopped that late is a bit different than the US AFAIK, but there is certainly the possibility of being stopped from work and (depending how you react) prevented from leaving the US for purely economic inventions:
https://en.wikipedia.org/wiki/Invention_Secrecy_Act
I find it notable that the US' actual checks on government have worked against expanding the secrecy act further into economic protectionism for favored industries, etc.
The US doesn't need to do 'something like this', they can just bar you from the global financial system if they don't like you. [1]
Or just order another country to snatch you up.
> https://en.wikipedia.org/wiki/Meng_Wanzhou
She was arrested, and was being extradited from Canada into the United States... Because her Chinese company was doing business with Iran.
> https://en.wikipedia.org/wiki/Viktor_Bout
This chap was arrested in Thailand, extradited, and did a decade in a US prison because he had the audacity of selling weapons from Russia to Colombia. I'm not sure how exactly US law is of any relevance to such transactions...
---
[1] Or, since 2025, just shoot a missile at your boat, with an option for a follow-up salvo if there any survivors. Strangely enough, everyone who has managed to survive both the initial attack, and the double-tap has so far been repatriated to their countries of origin, with no charges filed by the US.
US has blocked merges of companies especially with Chinese and other non western companies. Including Japan, India etc.
For instance US Steel acquisition by Nippon Steel(japanese) is one such example. https://www.bbc.com/news/articles/cx2vz83pg9eo
More examples,
Ant Group(chinese) tried to buy MoneyGram (blocked in 2018) https://www.reuters.com/article/business/us-blocks-moneygram...
Xiamen Sanan Optoelectronics tried buying Lumileds, blocked again by US. Also Chinese ofc.
Broadcom and Qualcomm deal was also blocked, Broadcom was then Singapore based in process of moving to US I believe... (very sus happened in 2018 too, someone didn't pay Donald enough)
https://thediplomat.com/2014/02/india-inc-and-the-cfius-nati... Indian company forced to divest from US tech firm... (2013)
I am certain there must be European examples as well but smaller ofc, AI companies are over valued these days, most acquisitions were never this big in the olden days of pre 2020s...
I know for a fact that most folks don't want to invest in US for this reason other than in public equities or bonds ofc. Private foreign investment in US has been high only due to European pensions and Middle-eastern money going into it.
I don't know about how fair, far, or right it was compared to these were, detaining founders is also not confirmed, but sure let's assume it's true still...
Only difference in US is perhaps foreign folks can sue over it. Sometimes, if they are lucky and if the deal is worth it.
I find it strange people of HN being based in US can be so ill informed of what their country, does to foreign companies but be mad about things foreign companies do to them?
I mean sure rest(96%) of the world doesn't really exist, it's but a myth or a land the better folks of US only want to take value when needed?
Unsure what this comment meant, this has happened before as well btw, these are just post 2010s examples because they are relevant. Russians and US used to do this too, India and US were worse of pre-2000s, Japan and US were at their throats in 1980s, in terms of trade and acquisition...
We maintained control of EUV tech after selling key parts to the Dutch, but that came out of US public-private partnerships and not pure private.
Famously back in the day Grindr , which had a plot point in the Silicon Valley series . Probably more obscure ones that havent been heard of outside software in the Hard tech space like MotorSich (Ukranian) was being courted by Chinese investment got blocked due to US pressure. And very recently the whole TikTok fiasco.
What examples do you have of the US government doing to CEOs what has happened to people like Jack Ma and many other public figures?
For China, there are so many examples of people doing 180s and being full of contrition after those interventions, it's hard to imagine anything but severe intimidation or worse happening behind closed doors.
https://en.wikipedia.org/wiki/Joseph_Nacchio
1 reply →
https://www.politico.com/live-updates/2025/01/16/congress/ti...
I'm totally fine with what-about-ism here; making China a better place to live and do business is out of my jurisdiction and doesn't help me, encouraging the USA to do better will.
You've been all over this this thread responding with the same whataboutist comments claiming America does the same thing. And yet, I'm pretty sure America hasn't held American citizens hostage in order to force them to unwind a sale of a foreign company they founded to a different foreign company.
US absolutely has exit bans on people who break/is being investigated for national security and export control laws, which is what Manus did. Except Americans don't call it hostage taking when they do it.
18 replies →
You're right. To my knowledge, we don't hold citizens hostage to force them to unwind the sale of a foreign company they smuggled out of America into another country to a different foreign company.
But you cannot seriously hold America up as blameless when we've wielded our economy as a cudgel against anyone we remotely disagree with (sanctions against Cuba, Iran, China, Russia, etc; tariffs against everybody), have military bases scattered around the world to invade anyone at a moment's notice, regularly park our navy off foreign shores to coerce desired outcomes, and dronestrike civilians as a final saber-rattling before full-fledged conflict.
The details change, but the fundamental playbook - using state violence to coerce outcomes favorable to said state - is far from new. Hell, take a look beyond the past thirty years of history and there's a glut of incidents where empires used this sort of leverage to achieve outcomes - including the United States! We've traded political prisoners to achieve negotiated outcomes repeatedly, we just use different words to make ourselves feel better about it. We've propped up entire puppet states to ensure American corporate interests were served instead!
Like, holy shit, why do I have to teach you naysayers what's already outlined in history books just because you can't be bothered to do the assigned reading?
20 replies →
It's easy to see how this will play out. The entrepreneurs will get nothing. Most likely everyone else that has been paid (investors, etc) will keep what they received. Whether Meta or the CCP ends up with the proceeds of the entrepreneurs, that's anyone's guess.