What blocked Manus deal means for Chinese AI start-ups relocating abroad

Beijing's intervention in the Manus-Meta deal has stoked caution for firms and investors while raising questions about the continued viability of a playbook in which Chinese tech companies use a Singapore identity to access global capital.

- Joyce ZK Lim China Correspondent

The authorities this week ordered the unravelling of the American tech giant’s US$2 billion (S$2.6 billion) purchase of Manus, a Chinese-founded artificial intelligence startup that rebased in Singapore before the sale.

With this, analysts say Manus’ story is unlikely to recur as Beijing makes clear how far it will go to assert oversight of strategic technology developed in China, regardless of where firms are subsequently domiciled.

“For Chinese tech companies (looking) to disguise themselves as Singaporean companies — this road is over,” said Dr Dan Wang, China director at Eurasia Group, a geopolitical risk consultancy.

“If you use Chinese resources, start from China and then leave through Singapore, that’s not okay,” she told The Straits Times.

Manus makes AI agents that can do complex tasks like create apps and websites with little supervision. First developed in China, it rose to fame in 2025 and was seen as an example of the country’s advances in AI.

Following an investment from US venture capital firm Benchmark, Manus moved its headquarters to Singapore, shed its China operations, and then sold itself to Meta, which observers say ultimately triggered Beijing’s clampdown.

The Chinese government announced on April 27 that it would bar foreign investment in Manus, and asked that the transaction be unwound.