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China blocks Meta's acquisition of AI startup Manus

cnbc.com

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Re: China blocks Meta's acquisition of AI startup Manus

#41

Post by r14c »

kccqzy wrote: post #28
reissbaker wrote: post #23

Earlier quoted context omitted.

I think it's precisely the fact that the founders live in China. The CCP can make them... kick rocks... for the rest of their lives. Generally speaking this seems bad for Chinese companies, though. They were able to raise capital from the West by running out of "Singapore"; I think basically every investor will have significant pause investing in Chinese-national-owned startups after this, "Singapore-based" or not.

The CCP is known to be very aggressive. Even if the founders acquired Singaporean citizenship (which is way easier for ethnic Chinese people than for other races), the CCP would have taken them hostage if they just set foot in China like for a business trip. They can invent a crime and subject them to a trial with Chinese rules. What can Singapore do? It’s a tiny country that tries to walk a tightrope by simultaneous…

They wouldn't have to "invent a crime", circumventing state interests in strategic technology is likely already illegal.

Re: China blocks Meta's acquisition of AI startup Manus

#42

Post by paulsutter »

wxw wrote: post #6

> After a $75 million fundraising round led by U.S. venture firm Benchmark in May 2025, Manus shut its China offices in July, laying off dozens of employees. It then moved its operations to Singapore. > It was not immediately clear on what grounds China was seeking the annulment of a deal involving a Singapore-based company and how, if at all, a completed acquisition transaction would be unwound. > Manus' two co-foun…

It's easy to see how this will play out. The entrepreneurs will get nothing. Most likely everyone else that has been paid (investors, etc) will keep what they received. Whether Meta or the CCP ends up with the proceeds of the entrepreneurs, that's anyone's guess.

Re: China blocks Meta's acquisition of AI startup Manus

#43

Post by [deleted] »

aesch wrote: post #22
stego-tech wrote: post #16

Earlier quoted context omitted.

I suspect this is more of a warning shot to others attempting the same playbook ("Singapore-washing", as I've heard folks call it): the state is watching, and shifting geopolitics means it's in their interest to retain successful talent and entities at home rather than let opposition have them. If anything, I'm genuinely surprised it took them this long. America's been doing this for decades without much in the way o…

I don't know if America has done anything quite like this. The example I'm looking for is where a company starts in the US but leaves and incorporates outside the US and then the US attempts to block acquisition by a foreign company. Also, the enforcement mechanism while vague seems un-American. America might tax the company upon exit but it wouldn't hold the founders hostage in America. If you have examples I'd be c…

[deleted]

Re: China blocks Meta's acquisition of AI startup Manus

#44

Post by baq »

reissbaker wrote: post #23
_fat_santa wrote: post #19

Besides the fact that the founders are in China and are barred from leaving, is there anything that prevents Manus/Meta from just telling the CCP to kick rocks? Sure they can object to it or claim they are "blocking" the sale, but is there really anything they can do considering that Manus is no longer within their jurisdiction?

I think it's precisely the fact that the founders live in China. The CCP can make them... kick rocks... for the rest of their lives. Generally speaking this seems bad for Chinese companies, though. They were able to raise capital from the West by running out of "Singapore"; I think basically every investor will have significant pause investing in Chinese-national-owned startups after this, "Singapore-based" or not.

> Generally speaking this seems bad for Chinese companies, though.

Anyone who has ever thought otherwise was just naive. This is anything but news. If you’ve had an impression that China capital market is free and western-like, you were right - it was an impression. Always has been.

Re: China blocks Meta's acquisition of AI startup Manus

#45

Post by strangegecko »

Detrytus wrote: post #26
some_random wrote: post #10

Earlier quoted context omitted.

"Your families live here", maybe "We have shadow police stations across the world", the playbook is well established

That's interesting, because recently China is definitely trying to paint themselves as the reasonable, stable partner, commited to upholding international law (unlike the US, which is ruled by a madman) . Trying to block this aquisition without good legal argument goes directly against that strategy.

They're doing a lot that goes against that strategy, you just don't see it in the headlines except in cases such as these or when you dig into how they conduct international negotiations or business deals involving the Chinese market.

Not to mention how they are openly expansionist in the SCS and obviously wrt Taiwan.

Of course they want to be seen as reasonable, their ideal is to control the international narrative just how they can do it internally in China.

Re: China blocks Meta's acquisition of AI startup Manus

#46

Post by pishpash »

_fat_santa wrote: post #19

Besides the fact that the founders are in China and are barred from leaving, is there anything that prevents Manus/Meta from just telling the CCP to kick rocks? Sure they can object to it or claim they are "blocking" the sale, but is there really anything they can do considering that Manus is no longer within their jurisdiction?

Are you really asking whether business deals can be unwound for whatever reason, like how ASML is "forbidden" to sell to certain customers after contracts are signed?

Re: China blocks Meta's acquisition of AI startup Manus

#47

Post by baq »

jorblumesea wrote: post #20

So China is just claiming that anyone who is ethnically Chinese should be pressured? Manus is in Singapore and has no direct connections to China physically and financially. SG offices, SG product, SG founders with family on the mainland.

First time interacting with a totalitarian government?

Re: China blocks Meta's acquisition of AI startup Manus

#48

Post by MarkusQ »

meisterbrendan wrote: post #38
deepfriedbits wrote: post #29

Earlier quoted context omitted.

Not only that, but they can make life inconvenient for your family. Nobody reasonable would accuse the CCP of outright violence, but there are a million bureaucracy-related tricks the state can pull to leverage you and/or your family.

"Nobody reasonable"??

Well, reasonable people generally don't have a death wish. :P

Re: China blocks Meta's acquisition of AI startup Manus

#49

Post by stego-tech »

reissbaker wrote: post #24
stego-tech wrote: post #16

Earlier quoted context omitted.

I suspect this is more of a warning shot to others attempting the same playbook ("Singapore-washing", as I've heard folks call it): the state is watching, and shifting geopolitics means it's in their interest to retain successful talent and entities at home rather than let opposition have them. If anything, I'm genuinely surprised it took them this long. America's been doing this for decades without much in the way o…

You've been all over this this thread responding with the same whataboutist comments claiming America does the same thing. And yet, I'm pretty sure America hasn't held American citizens hostage in order to force them to unwind a sale of a foreign company they founded to a different foreign company.

[flagged]

Re: China blocks Meta's acquisition of AI startup Manus

#50

Post by dublinstats »

some_random wrote: post #31
arjvik wrote: post #15

Earlier quoted context omitted.

elaborate on the problem, for those of us that this is not obvious to?

Chinese company has an issue being a Chinese company for international legal or optics reasons, relocates to Singapore while still being controlled by Chinese nationals or all-but-Chinese-Nationals. Bytedance is a great example. Russian companies do the same thing with Switzerland, see Kaspersky.

They could just as well relocate to California for that matter.

The question is are they still controlled by the PRC. China doesn't allow dual citizenship (like other Asian countries), so people might legitimately want to work abroad while keeping their native passport.

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