The U.S. and China are locked in an all-out race to build the most powerful AI on the planet, with Beijing pouring billions into homegrown models while watching its best talent migrate to American firms.

Amidst this contest, Manus—a Chinese AI startup—quietly relocated to Singapore before being snapped up by Meta for $2 billion. This move was surprising given that Manus had been operating outside China’s orbit, relocating its headquarters and core team from Beijing to Singapore in the process.

But if these moves raised eyebrows in Washington, they were sheer panic back home. Chinese tech companies are well aware of what happens when they sell their young crops; Jack Ma’s brush with regulators serves as a stark reminder. Consequently, Manus co-founders Xiao Hong and Ji Yichao were summoned for questioning by China's National Development and Reform Commission.

While no formal charges have been filed, this inquiry into whether the Meta deal violated Beijing’s foreign investment rules highlights the lengths to which China will go to protect its tech dominance. In a world where AI is key, Manus’s founders may find themselves locked in a geopolitical chess match for some time yet.