Chinese regulators are intensifying their investigation into Meta Platforms’ $2 billion acquisition of Manus. The AI startup was founded by Chinese entrepreneurs before relocating its headquarters to Singapore.
Authorities are examining whether the transaction violates investment and technology export control laws. The probe targets Singapore-washing, a strategy where Chinese firms move abroad to bypass geopolitical restrictions and secure foreign capital.
The National Development and Reform Commission has barred Manus CEO Xiao Hong and chief scientist Ji Yichao from leaving China. This travel ban follows a formal meeting between the founders and the commission.
Beijing aims to prevent the outflow of critical artificial intelligence technology and domestic talent. This escalation creates significant uncertainty for Meta’s deal and other Chinese-founded startups pursuing global expansion.