Hajra Naz
The race to dominate artificial intelligence isn’t slowing down—and the tension between the U.S. and China is only getting sharper. Beijing is pouring billions into domestic AI development, tightening control over tech firms, and keeping a close eye on talent drifting toward American companies.
But then came a twist. Manus, one of China’s fastest-rising AI startups, quietly shifted its base to Singapore—and not long after, agreed to a $2 billion acquisition by Meta.
That move didn’t go unnoticed.
Read More: Meet Manus: China’s AI Agent That Can Handle Complex Tasks for You
A Startup That Rose Fast—and Moved Faster
Manus first grabbed attention last year with a slick demo. Its AI agent could screen job applicants, plan trips, and even analyze stock portfolios. Boldly, the company claimed it could outperform tools like OpenAI’s Deep Research.
Investors jumped in quickly. Benchmark led a $75 million funding round, valuing the startup at $500 million. Not everyone was thrilled. Some U.S. lawmakers openly questioned why American capital was backing a company tied to a geopolitical rival.
Still, Manus kept growing. By the end of the year, it had millions of users and reportedly crossed $100 million in annual recurring revenue.
Then Meta stepped in—and closed the deal.
The Singapore Shift
This wasn’t just a simple acquisition. Manus had already been distancing itself from China for months. It moved its headquarters to Singapore, restructured ownership, and began operating more like an international company.
After the deal, Meta promised to cut ties with Chinese investors and shut down any remaining operations inside China. On paper, Manus looked less like a Chinese startup and more like a Singapore-based tech firm.
But that didn’t make the situation any less sensitive.
Read More: Meta confirms acquisition of Manus, an AI startup everyone has been talking about
Beijing Pushes Back
In China, there’s a term for this kind of move: “selling young crops.” It refers to promising local companies that leave early—taking talent, data, and intellectual property with them before fully maturing at home.
And Beijing doesn’t take that lightly.
China has a long history of asserting control over its tech giants. Just look at what happened to Jack Ma—after criticizing regulators, he vanished from public view, Ant Group’s IPO was halted, and Alibaba was hit with a massive fine. The message was clear: no company is beyond reach.
So when reports surfaced that Manus founders Xiao Hong and Ji Yichao were called in by regulators, it raised eyebrows. According to the National Development and Reform Commission, the issue is whether the Meta deal broke foreign investment rules.
Officially, it’s being described as a routine review.
Read More: Meta’s Manus Triggers Mixed Reactions in Washington and Beijing
A High-Stakes Gamble
No charges have been filed. But the timing—and the context—matters. The global AI race is now tied to economic power, national security, and technological leadership.
For Manus, the decision to relocate and sell may have seemed like a strategic win. But in this environment, moves like that don’t go unchecked.
At some point, the company may have believed it had successfully stepped outside Beijing’s shadow.
Now, it’s clear that Beijing still wants answers—and until it gets them, Manus’s story is far from over.
