{"text":[[{"start":7.75,"text":"When AI start-up Manus moved its headquarters to Singapore last year, it was following in the footsteps of hundreds of other Chinese companies. Many have long seen the city-state and business hub as a route for global expansion. "}],[{"start":21.1,"text":"But less than 12 months later, China has blocked Meta’s $2bn acquisition of Manus, arguing it is a Chinese company and needs Beijing’s approval for any deal. "}],[{"start":32.2,"text":"The move, at a delicate time for Beijing-Washington relations as Chinese leader Xi Jinping and US President Donald Trump seek an extension to their trade truce, raises questions about whether Singapore still offers a sustainable path for Chinese companies. "}],[{"start":48.650000000000006,"text":"As well as a stepping stone to global markets, some have seen a move to Singapore as a way to mask their heritage and evade geopolitical scrutiny at a time of rising tensions between the US and China — a practice known as “Singapore washing”. "}],[{"start":63.900000000000006,"text":"“For foreign companies that want to buy Chinese technology, it’s a reminder that incorporating in Singapore is no longer a regulatory shield,” said HK Park, who heads the investment screening practice at Washington-based corporate advisory firm Crumpton Global. “It’s merely an address that still requires national security vetting of the target company.”"}],[{"start":85.25,"text":"The government is highly sensitive to the “Singapore washing” tag and how companies are using the city-state, especially when it could anger two of its closest trading partners, China and the US."}],[{"start":96.05,"text":"In 2024, former prime minister Lee Hsien Loong said companies were welcome to set up in the city-state as long as they were upfront about their origins. "}],[{"start":104.75,"text":"“If the Chinese come, they are good companies — they create jobs, they pay well, they bring technology, they bring markets — I say ‘come’,” he said. “But of course, we would like to know where you come from and what your antecedents are.” "}],[{"start":119.75,"text":"Singaporean opposition MP Andre Low captured the sensitive nature of Manus’s relocation when speaking in parliament following Meta’s takeover: “One cannot help but feel that Singapore’s business environment was taken advantage of opportunistically to achieve certain aims and then now, being cast aside.” "}],[{"start":140.1,"text":"Low said: “Does [the government] have any considerations to discourage companies from using Singapore as a flag of convenience, without accruing any benefits to the Singapore labour force?” Singapore’s Ministry of Trade and Industry did not respond to a request for comment."}],[{"start":155.35,"text":"From the US perspective, “the Singapore-washing template was already fraying before Manus,” said Park. "}],[{"start":161.95,"text":"“There were questions about whether the grey area for redomiciling is sustainable, not because of the Chinese government, but because of increasing US scrutiny of companies located anywhere with problematic Chinese links.” "}],[{"start":175.2,"text":"More broadly, Singapore’s position as a neutral, global business hub has long made it an attractive destination for Chinese companies trying to establish an international presence. "}],[{"start":186.54999999999998,"text":"While Hong Kong, a Chinese territory, is often the starting point for mainland Chinese companies attempting to expand, Singapore, which has long and deep ties to China, offers more distance from Beijing and a broad global reach, especially when it comes to attracting US capital. "}],[{"start":202.7,"text":"Last year, Chinese companies overtook the US for investment in Singapore. China accounted for just over half of the money spent by businesses in Singapore on operations last year, up from 15 per cent a year earlier. "}],[{"start":216.75,"text":"Several of China’s biggest tech companies — including Tencent, Alibaba and Huawei — have established a significant presence in the city-state. "}],[{"start":null,"text":"
"}],[{"start":226,"text":"TikTok owner ByteDance — at the centre of a tug of war between Washington and Beijing on whether the social media app can continue to operate in the US — occupies several floors in One Raffles Quay, a landmark office block in Singapore that prominently displays its logo. "}],[{"start":243.1,"text":"Fast-fashion retailer Shein uses Singapore as a hub for global business, having backtracked on an earlier effort to “de-Chinafy” itself following pressure from Chinese regulators. It needed Chinese regulators’ approval to greenlight any overseas IPO."}],[{"start":259.5,"text":"Intense domestic competition and weaker demand were forcing more Chinese companies to look abroad and Singapore was still the natural next step for many, analysts said. "}],[{"start":270.2,"text":"Those that do go to Singapore find a cottage industry of lawyers and professional services companies ready to support them. Some of China’s biggest law firms, including Fangda Partners and Han Kun, have set up in the city-state to help support their compatriots."}],[{"start":284.09999999999997,"text":"“Singapore is an ideal place for many Chinese firms to go abroad, either for international markets or avoiding US tariffs or China’s domestic regulations on tech,” said Feng Qu, head of economics at Singapore’s Nanyang Technological University. "}],[{"start":300.7,"text":"“The [Singapore-washing] strategy appears to be more effective for small firms but less successful for well-known tech giants,” said Feng. "}],[{"start":309.09999999999997,"text":"The Manus experience could deter established companies in sensitive industries such as AI and quantum computing, though companies in sectors such as retail and fintech could still come, said Matthias Hendrichs, a Singapore-based adviser to AI companies. "}],[{"start":324.54999999999995,"text":"“If you are a founder in China and you need to raise capital because you think you have a global product on your hands, there is not much of an alternative,” Hendrichs said, suggesting the onus would be on start-ups to move at an earlier stage in their development."}],[{"start":339.9,"text":"“If you want to go under the radar, you need to leave the mainland at an earlier stage, when you are not as visible or successful,” he added. “That is the future of Singapore washing.” "}],[{"start":358,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778718411_3398.mp3"}