"When Benchmark led a financing round for Manus earlier this year, the investment sparked immediate controversy. U.S. Senator John Cornyn complained about the deal on X, and the investment prompted inquiries from the U.S. Treasury Department around new rules restricting American investment in Chinese AI companies. The concerns were significant enough to spur Manus's eventual relocation from Beijing to Singapore part of what drove the company's step-by-step disentanglement from China, as one Chinese professor described it on WeChat this past weekend."
"Now the tables have turned. Chinese officials are reportedly reviewing whether the Meta deal violates technology export controls, potentially giving Beijing leverage it wasn't initially perceived as having. Specifically, they're examining whether Manus needed an export license when it relocated its core team from China to Singapore a move that's apparently now so common it has earned the nickname Singapore washing."
Meta is acquiring AI assistant platform Manus for $2 billion, prompting regulatory scrutiny primarily from Chinese authorities rather than U.S. regulators. U.S. officials appear satisfied the transaction's legitimacy despite earlier concerns about Benchmark's investment. Benchmark's financing in Manus triggered political backlash and U.S. Treasury inquiries, contributing to Manus's relocation from Beijing to Singapore as part of disentanglement from China. Chinese regulators are now reviewing whether export controls were breached and whether an export license was required for the relocation, a practice referred to as 'Singapore washing.' Beijing fears the deal could encourage startups to relocate to evade oversight.
Read at techcrunch.com
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