The Singaporean startup Manus is finding that a change of address is not enough to evade the regulatory eye in Beijing. Despite relocating from China, the country’s regulators are now getting in the way of its US$2bn acquisition by Meta.
The National Development and Reform Commission (NDRC) prohibited the transaction on 27 April 2026, requiring the two parties to withdraw the deal that was initially announced in December 2025.
The late-stage intervention involving the two non-Chinese companies has drawn much alarm among tech founders and venture capitalists. Many are now reassessing the viability of the infamous Singapore-washing model strategy, where companies relocate from China to the city-state to avoid scrutiny from Beijing and Washington.
Reaching across borders
Since Manus was founded in China, it remains subject to the country’s strict export control regulations. These laws govern the sale of domestic technology to foreign firms.
Back in January, China’s Ministry of Commerce said it would conduct an assessment and investigation into Meta’s acquisition. This was followed by months of scrutiny into how the deal complied with technology import and export rules.
The NDRC said in a brief statement that the decision to prohibit the investment was made in accordance with laws and regulations. In March, two of Manus’ co-founders were also prevented from leaving the country amid a review of Meta’s acquisition.
A spokesperson for the social media giant told the BBC that the transaction complied fully with applicable law. They say, “We anticipate an appropriate resolution to the inquiry.”
The unwinding of the acquisition would mean significant difficulty for Meta. In March, the company mentioned that the team at Manus was already deeply integrated into Meta operations.
