Beijing officials are currently reviewing Facebook-parent Meta’s $2-billion acquisition of Beijing-founded artificial intelligence startup Manus to determine if the deal violates technology export controls, the Financial Times has reported, citing people familiar with the matter.
Chinese commerce ministry officials began assessing whether the relocation of Manus’ staff and technology to Singapore and the consequent sale to Meta required an export licence under Chinese law, the report said.
While the review is in its preliminary stages and may not lead to a formal investigation, the need for a licence could provide Beijing with an avenue to influence the transaction, including, in an extreme case, trying to force the parties to abandon the deal, the report added.
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The report noted that Beijing had used a “similar mechanism” to block US President Donald Trump’s attempted forced sale of TikTok during his first term.
Meta acquired Manus last month and said at the time that the startup would cut ties with China after the acquisition.
The deal drew concern in Beijing that acquisitions such as these could pave the way for Chinese start-ups to set up shop out of the country to bypass domestic supervision, the FT reported.
Reuters could not immediately verify the report. Meta and Manus did not immediately respond to requests for comment.
’Singapore washing’
A growing number of Chinese companies have been looking to set up offices in Singapore, betting that a move to the trade-focused city-state would reduce risks that their operations could get disrupted by Sino-US geopolitical tensions.
The trend, billed as “Singapore washing” by some analysts, started gaining traction near the end of Trump’s first presidency and has since accelerated, spreading to various sectors from critical minerals to tech and biotechnology.
There is no official data on how many Chinese companies are now domiciled in Singapore, but one industry expert told Reuters last month that interest from Chinese firms was “very strong” with about 15-20% more inquiries now year-on-year.
Singapore offers an attractive base for firms looking to navigate US tariffs and maintain access to key American technologies whose sales are restricted in China. Washington imposes tariffs of just 10% on goods from Singapore.
“The Singapore brand is trusted worldwide. Singapore is valued for its international flavour, neutrality, and is culturally easy for Chinese firms and their expats to adapt to,” Maybank China economist Erica Tay told Reuters.
Relocation not enough
Companies that have turned to Singapore — like Manus AI — include data centre operator DayOne, spun off from GDS Holdings; ChemLex, an AI-powered chemical synthesis company; and optical products maker Terahop, backed by China-based Zhongji Innolight.
But while a relocation in theory offers businesses more flexibility in managing tariffs, export controls and other protective trade policies, such moves do not guarantee firms freedom from political or regulatory heat.
Fast fashion firm Shein and short video platform TikTok, among the early movers to Singapore, notably failed to shield their operations from Western scrutiny.
Both companies have also had to give in to Beijing’s regulatory scrutiny as well. Shein is currently seeking China’s blessing for a stock market debut in Hong Kong, and reportedly considering relocating back to China.
Meanwhile, Beijing blocked negotiations on selling TikTok’s US operations for months and invoked Chinese laws and regulations yet again last month, days after the short-video platform signed a deal with US buyers.
It remains to be seen whether Beijing will allow the deal to be closed as scheduled on January 22.
With Manus AI, though, China may not have a significant urgency to intervene as its product — an AI-powered assistant — is not considered a tech that is core to Chinese interests, the FT reported, citing its source.
Manus went viral early this year on X after it released what it claimed was the world’s first general AI agent, capable of making decisions and executing tasks autonomously, with much less prompting required than AI chatbots such as ChatGPT and DeepSeek.
A Chinese expert noted, however, that the Chinese review could focus on whether Manus developed export-controlled technologies before leaving China in 2022.
“If unauthorised export of restricted technologies is confirmed, legal liability may arise . . . [including] criminal liability,” he wrote.
- Reuters, with additional editing and inputs from Vishakha Saxena
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