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Beijing is reportedly about to revoke travel bans imposed on the founders of the AI startup Manus. This could put an end to one of the most bizarre moments of the AI arms race between the U.S. and China. But for foreign tech firms, the greater question is how safe an acquisition is when the company being acquired was created in China, even if it is relocated abroad. The founders found themselves as stranded assets after Chinese regulators forced Meta to reverse its $2 billion acquisition of Manus. It drove the startup towards prospective Chinese investors. The timing appears meaningful. Weeks after the reversal, Beijing promulgated a comprehensive outbound investment framework that came into effect on July 1. According to reports, the rules establish a formal legal basis for reversing completed foreign transactions. The regulations provide authorities with wider powers to review foreign investments associated with technology, data and national security. Thus, the Manus dispute can be seen not so much as an isolated regulatory dispute, but rather as an early example of the exercises of power that Beijing has now legalized. Why Beijing wanted Manus back Manus creates AI agents capable of more than just producing text. This company has developed software that can dissect complicated demands into tasks, utilize web-based applications, and function in a virtual computing environment. As a result, its AI agents can conduct research and other operations with minimal human involvement. Thus, Manus is entering the booming sector of agent-based AI, where the race is changing from chatbots to agents that are able to perform specific tasks. Beijing started looking into Meta’s acquisition of Manus in January 2026. The National Development and Reform Commission (NDRC) finally instructed the parties on April 27, 2026, to reverse the acquisition and stop foreign capital from flowing into the…