China's government has blocked Meta's plan to acquire Singapore-based AI startup Manus for $2 billion. The National Development and Reform Commission stated that Manus, which was originally founded in China before relocating to Singapore, does not comply with foreign investment regulations. This represents one of the largest tech sector blockages in recent times.
This intervention demonstrates the intensifying technology competition between the United States and China. Just as the U.S. has restricted investment in Chinese AI companies, China is preventing its top AI talent from leaving the country. This blockade has become the strongest warning sign yet for "Singapore-washing" – the practice of companies relocating from China to Singapore to avoid international scrutiny.
Manus has gained fame as the "next DeepSeek" due to its AI agents capable of conducting market research and writing code independently. While Meta wanted to bolster its AI capabilities by acquiring this startup, it has been stopped in its tracks by China's technology export control regulations.
Ref: cnbc
