Meta's Manus Deal Hits Snag as China Widens Review
China's expanding scrutiny of Manus raises questions about using Singapore as a regulatory workaround for Chinese AI talent.
Meta's splashy $2 billion acquisition of Manus, an AI startup headquartered in Singapore but built on Chinese talent, is running into turbulence. China has broadened its review of the deal, casting serious doubt on what critics call the "Singapore-washing" model — routing Chinese AI companies through Singapore to dodge regulatory friction.
The deal sent shockwaves through tech hubs from Silicon Valley to Shenzhen when it was announced late last year. Now sources tell CNBC that Meta relocated more than 100 Manus employees to Singapore in early March, a move that looks increasingly complicated under heightened Chinese scrutiny.
The situation poses a real test case. If Beijing cracks down on this structure, it could freeze a pipeline that other companies have quietly used to access Chinese AI expertise without the geopolitical baggage of a direct China deal.