Editorial illustration for Beijing Considers Review of Manus-Meta Deal After USD 75M Series B Funding
Beijing Eyes Manus–Meta Deal After $75M Series B Funding
Beijing May Scrutinize Manus–Meta Deal After USD 75M Series B Funding
Tensions are brewing in the tech investment world as Beijing signals potential intervention in a high-profile startup deal. Manus, a global virtual reality hardware company with roots in China, has caught government attention after securing a substantial $75 million funding round.
The startup's international trajectory seems to have triggered regulatory radar. Founded just two years ago by a Chinese team, Manus has since relocated its headquarters to Singapore, a move that might complicate its relationship with Chinese authorities.
With US venture firm Benchmark leading the investment and valuing Manus at roughly $500 million, the deal represents more than just a financial milestone. It potentially signals a complex geopolitical chess match between technology, capital, and national interests.
The funding round's international nature and Manus's strategic repositioning have raised questions about how Beijing might respond. Will the government view this as an opportunity or a potential risk to its technological and economic interests?
The concern arises because Manus, now headquartered in Singapore, was founded in China in 2022. The company was established by a China-based team and raised $75 million in a Series B round in April 2025, led by US venture firm Benchmark, valuing it at about $500 million. The funding drew scrutiny from US regulators due to executive orders limiting American investment in Chinese AI companies, prompting a Treasury Department review.
After the round, Manus shifted its headquarters to Singapore and scaled back its China operations. This included layoffs in mainland China, shutting down local operations, cancelling plans for a China-specific product, and ending technical collaboration discussions with Alibaba. However, despite attempts to distance itself from China, regulatory exposure may persist.
Fan also noted that there has been no confirmation that Manus' core team members have renounced Chinese nationality or that they are no longer subject to Chinese jurisdiction. He added that Manus' mainland-registered parent company, Butterfly Effect, remains with the founding team, and that the firm's early research and development was conducted in China. Other experts quoted in the report said AI agents are likely to be classified as "important information technology products and services" under Chinese regulations, which could bring the Meta-Manus deal within the scope of China's national security review of foreign investment.
The Manus-Meta deal sits at a complex geopolitical crossroads. Beijing's potential review signals the intricate dance between technological idea and national security concerns.
Manus represents a fascinating case study of cross-border tech development. The company's rapid trajectory, from a China-based startup to a Singapore-headquartered entity valued at $500 million, highlights the fluid nature of global AI idea.
US regulatory pressure appears to have catalyzed Manus's strategic relocation. The Treasury Department's review and existing executive orders restricting American investment in Chinese AI companies likely prompted the company's move to Singapore.
Benchmark's $75 million Series B investment underscores international investor confidence. Yet the deal's geopolitical nuances remain uncertain, with Beijing's potential review adding another layer of complexity to the company's future.
The situation reveals how technology startups must navigate increasingly complicated international regulatory landscapes. Manus's ability to secure significant funding while repositioning itself geographically suggests a nimble approach to potential regulatory challenges.
Further Reading
- China is sending a warning to US tech firms - Business Insider
- Review of Meta-Manus deal underlines China’s tightening grip on AI exports - South China Morning Post
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Common Questions Answered
Why did Manus relocate its headquarters from China to Singapore?
Manus relocated to Singapore likely in response to increasing US regulatory scrutiny over Chinese tech investments. The move appears to be a strategic decision to navigate complex geopolitical tensions and maintain international investment opportunities.
How much funding did Manus secure in its Series B round?
Manus raised $75 million in its Series B funding round in April 2025, which was led by US venture firm Benchmark. The funding valued the virtual reality hardware company at approximately $500 million.
What regulatory challenges did Manus face during its recent funding round?
The Manus funding round attracted scrutiny from US regulators due to executive orders limiting American investment in Chinese AI companies. This prompted a Treasury Department review and likely influenced the company's decision to relocate its headquarters to Singapore.