Tech circles from Silicon Valley to Shenzhen buzzed when
Meta acquired Manus, a Singaporean AI startup with Chinese roots, for $2 billion late last year. For Chinese founders striving to build products that could rival American peers, the deal felt like a validation that an intricate offshore structure – known as “Singapore washing” where companies relocate to the city state – was the answer to circumvent scrutiny from both Beijing and Washington.
Within days, China’s surprise intervention on the deal quickly shattered that hope, as Beijing stepped up efforts to discourage Chinese AI founders from moving business offshore.
The Chinese government started reviewing whether Manus’ sale had violated laws governing technology exports and outbound investment, and barred co-founders Xiao Hong and Ji Yichao from leaving China for Singapore, according to a
Financial Times report earlier this week.
