Editor's Note: This piece is part of a new, website-only series of sharp, concise commentaries. The goal is to deliver rapid, insightful analysis on key moments shaping Chinese tech.
For a Chinese technology start-up with global ambitions, a Singaporean headquarters is becoming standard kit. The latest to adopt the strategy is Manus AI, a much-hyped developer of AI agents. But its relocation is less a sign of strength than a hedge against harsh political and commercial headwinds. For a company carrying a near-$500 million valuation, the move raises more questions than it answers.
Manus, backed by US venture capital firm Benchmark, insists its move is not about circumventing US restrictions on selling high-end Nvidia chips to China. That claim looks thin. The US Treasury is already reviewing Benchmark’s $75 million investment, a clear signal that Washington views Manus through a geopolitical lens. Following the playbook of Shein and TikTok, a Singaporean address provides a crucial layer of insulation and a neutral base to access global talent, clients, and capital. It is a corporate structure designed for a bifurcated world.
The bigger problem for Manus may not be in Washington, but in its home market. The company’s monthly active users reportedly halved to 10 million in the two months to May. That precipitous drop coincided with the entry of local behemoths ByteDance and Baidu into the AI agent space. Fleeing to a new headquarters is one thing; escaping a pincer movement between US regulators and giant domestic competitors is another entirely. That $500 million valuation, reached in April, already looks stretched against a shrinking user base.
For global investors, the "Singapore Sling" is now a key tell. A move to the city-state signals a Chinese tech company is serious about going global. But it also reveals deep anxieties about geopolitics and intense domestic competition. The ultimate success of Manus will not depend on its postal code, but on whether its product can thrive as its user enthusiasm wanes and giants enter its turf. A clever corporate strategy cannot fix a difficult market reality.
About Hello China Tech
I’m Poe Zhao, and I bridge the gap between China’s rapidly evolving tech ecosystem and the global community. Through Hello China Tech, I provide twice-weekly analysis that goes beyond headlines to examine the strategic implications of China’s technological advancement.
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Chinese companies moving to Singapore enjoy the worst of both worlds. Their Chinese competitors will accuse them of turning their backs on their homeland and grab market share. They're still too Chinese for Washington.
Better to stay in China and focus on growth than deal with the distractions of moving to SG.