According to Financial Times, Meta agreed to acquire AI assistant platform Manus for $2 billion, drawing approval from U.S. regulators but scrutiny from Chinese officials over potential technology export control violations tied to Manus’s relocation of its core team from Beijing to Singapore.
Benchmark led a financing round for Manus earlier this year, which immediately triggered controversy in the United States. U.S. Senator John Cornyn publicly criticized the investment on X, highlighting concerns about American funding flowing into Chinese AI firms. This reaction prompted inquiries from the U.S. Treasury Department, focusing on compliance with newly implemented rules that restrict U.S. investments in Chinese artificial intelligence companies. These rules aim to limit financial support for entities deemed sensitive in national security contexts, particularly those advancing AI technologies with potential military applications.
The pressure from U.S. authorities contributed to Manus’s decision to relocate its core team from Beijing to Singapore. A Chinese professor described this shift on WeChat over the weekend as part of the company’s “step-by-step disentanglement from China.” This move represented a strategic repositioning, allowing Manus to operate from a jurisdiction outside mainland China while maintaining operational continuity in the Asia-Pacific region.
Chinese regulators have now initiated a review of Meta’s acquisition to determine if it contravenes technology export controls. The examination centers on whether Manus required an export license when transferring its core team and associated technologies to Singapore. This practice, increasingly adopted by Chinese tech firms seeking international expansion, has been termed “Singapore washing” due to Singapore’s role as an intermediary hub that facilitates access to global markets without direct exposure to Beijing’s oversight.
A recent Wall Street Journal article stated that China possessed “few tools to influence the deal given Manus’s foothold in Singapore.” Subsequent developments suggest this view underestimated Beijing’s regulatory reach, as the export control probe introduces new leverage for intervention.
Officials in Beijing worry that approval of the Meta-Manas deal could set a precedent, prompting additional Chinese startups to relocate operations abroad and circumvent domestic regulatory frameworks. Winston Ma, a professor at New York University School of Law and partner at Dragon Capital, told the Journal that if the deal closes smoothly, “It creates a new path for the young AI startups in China.” This pathway would involve physical relocation paired with foreign acquisitions to bypass restrictions on technology transfers.
