China is increasingly keeping its best AI talent to itself

China is implementing stringent measures to retain its elite AI talent, with many researchers and startup leaders now facing travel restrictions. Reports indicate that prominent figures in the industry must acquire government approval before venturing abroad, marking a significant shift in Beijing's approach to managing its AI workforce amidst soaring global demand. In March 2025, The Wall Street Journal revealed that Chinese officials were advising leading AI innovators against traveling to the United States. This move signifies how Beijing is prioritizing the protection of AI as a vital economic resource and national security asset. The restrictions have intensified, especially following Beijing's closer scrutiny of the Manus-Meta deal. Recent investigations have barred Manus' co-founders from leaving the country, as regulators examine whether Meta's $2 billion acquisition of the startup violates foreign investment regulations. Amidst these developments, the co-founders of Manus are reportedly exploring ways to comply with government demands, including plans to raise $1 billion from external investors to repurchase the company from Meta. This situation illustrates the escalating AI competition between the East and the West, as highlighted by Stanford's latest index. It shows that the performance gap between leading U.S. and Chinese AI models has narrowed to just 2.7% as of March 2026, a significant decrease from 31% in 2023, raising concerns about America's ability to maintain its technological edge. While the U.S. still leads in model quality and impactful patents, China's rapid advancements in research publications, citations, and patent filings suggest it may soon surpass American AI laboratories. In addition to travel restrictions, China is also poised to regulate U.S. investments in its top AI firms, requiring government approval for companies like Moonshot AI, StepFun, and ByteDance to accept American capital. This news follows a series of economic countermeasures, including two rounds of export controls on critical rare earth materials and restrictions on state-funded data centers from utilizing foreign AI chips.