Meta's Acquisition of Kustomer Faces New Development: China Reportedly Penalizes Involved Individuals, Potentially Restricting Executive Travel

According to 1M AI News monitoring, Chinese regulatory authorities are taking punitive actions against individuals involved in Meta's over $2 billion acquisition of the AI startup Manus. Measures may include restricting certain Manus executives from leaving the country. The Ministry of Commerce announced the initiation of a compliance review on January 8 of this year, marking a transition from the investigative phase to the punitive phase.

Manus was founded by Xiao Hong in Beijing in 2022, relocated its headquarters to Singapore in June 2025, and was acquired by Meta in December of the same year. The key concern of Chinese regulators is that Manus's AI core technology was developed within China, then sold to a U.S. company after moving to Singapore, potentially requiring a prior application to the Ministry of Commerce for a technology export license. This also involves issues related to cross-border data compliance and overseas investment approval. A Meta spokesperson previously confirmed that Manus will close its operations in China.