Chinese Company Becomes American Property, Xi Jinping Unaccepting

Meta (Facebook, WhatsApp, Instagram) has announced the acquisition of the AI startup Manus for US$2 billion (Rp34 trillion). It did not take long for the Chinese government to attempt intervention.

Manus is an AI startup headquartered in Singapore but originally founded in China. The phenomenon of relocating companies to Singapore to avoid geopolitical conflicts between the US and China is known as ‘Singapore Washing’.

Manus’s headquarters and core team are known to have moved from China to Singapore since last year. In this way, the company can access larger capital from foreign investors, including Benchmark, a venture capital firm from San Francisco.

However, China is not staying silent. The Xi Jinping administration is reportedly attempting to prevent similar tactics in the future. The method involves the Xi Jinping administration preventing Chinese AI founders from relocating their businesses abroad.

A Financial Times report states that the Xi Jinping administration is reviewing whether there was any violation in the sale of Manus to Meta. This includes prohibiting founders Xiao Hong and Ji Yichao from leaving China via Singapore.

Wayne Shiong, managing partner of Argo Venture Partners, explained that more and more company founders are attempting to start businesses outside China. However, they do not conduct significant research and development in their home country, including attempting structural changes.

“The founders aiming for global expansion and higher valuations will still look to advantages from supporters in the US,” he said, quoted from CNBC International on Monday (30/3/2026).

Meanwhile, Yuan Chao, a lawyer from the Yingke law firm, described Manus’s actions as a warning for China. That is, companies will develop early-stage technology in China before moving it abroad.

“Where you build the product is more important than where the parent company is registered,” said Chao.