The Chinese government is reportedly reviewing sanctions against executives and others involved in the acquisition of Manus by Meta, a significant development in the ongoing US-China tech rivalry. According to a report by the New York Times, officials from China's National Development and Reform Commission expressed concerns over the deal, indicating that measures might be taken to prevent the outflow of critical AI talent and technology. This move signifies China's determination to curb the brain drain of its workforce and ensure that its technological advancements remain within national borders.

Meta's acquisition of Manus, a Chinese-founded AI startup that has moved its headquarters to Singapore, was announced in December at a price of $2 billion. Meta is intensifying its investments in AI research and has integrated Manus's team into its operations. However, the Chinese Ministry of Commerce has emphasized that it will evaluate whether the transaction aligns with national laws regarding export controls and technology transfers, reflecting a cautious stance towards foreign acquisitions that can affect domestic technological sovereignty. Despite the announcement of the acquisition, it remains incomplete due to ongoing regulatory scrutiny.

The situation surrounding Manus’s acquisition can be interpreted as a warning against the practice of ‘Singapore washing,’ where Chinese tech companies relocate their headquarters to avoid domestic regulations. Reports suggest that the Chinese government is monitoring attempts by Manus executives to leave China for Singapore, as this could set a precedent for others seeking to bypass regulatory obstacles. Furthermore, there are suggestions that the Chinese government might declare Manus's relocation illegal, reinforcing its commitment to protecting its technological landscape in light of escalating geopolitical tensions.