\n<\/p>\n
When fast-fashion giant Shein moved its headquarters to Singapore in 2022, the shift was widely seen as an attempt to distance the company from rising US-China tensions. <\/p>\n
The group presented itself as Singapore-based as it prepared for stock market listings in New York and later London. But those plans stalled after it failed to secure approval from Chinese securities regulators.<\/p>\n
More recently, founder Xu Yangtian reaffirmed the company\u2019s Chinese roots<\/span><\/a> when Shein applied to list in Hong Kong \u2013 a reminder that moving headquarters does not break regulatory ties.<\/p>\n That tension is becoming clearer as Chinese companies, especially tech groups, reshape their global structures to manage the rivalry between the US and China. Singapore has become a favoured base thanks to its stable regulation and reputation as a neutral hub. <\/p>\n But recent scrutiny of an artificial-intelligence deal suggests relocation alone may not shield companies from geopolitical pressure.<\/p>\n The US$2 billion (S$2.6 billion) purchase of Singapore-based AI group Manus<\/span><\/a> by US tech giant Meta in January raised concerns in Beijing that the deal may have sidestepped China\u2019s technology export controls.<\/p>\n Other Chinese groups have made similar moves. ByteDance, owner of TikTok, has hired thousands of staff in Singapore, while pharmaceuticals company WuXi Biologics is building a US$1.4 billion research and development hub in the country<\/span><\/a>. <\/p>\n The lesson is straightforward: relocation may reduce political exposure, but it rarely removes it. Companies such as Manus and Shein remain subject to Chinese oversight even after moving their headquarters to Singapore. Chinese rules claim jurisdiction based on where a company\u2019s assets and operations originate, not simply where it is incorporated. <\/p>\n Relocation, in other words, does little to reduce a firm\u2019s exposure to China\u2019s technology export controls. Or to the broader contest between the US and China over advanced technologies. <\/p>\n Manus provides a use case to understand the thinking of Chinese regulators. The company moved its headquarters to Singapore before its sale to Meta\u00a0<\/b>in an effort to reduce not only the geopolitical baggage that comes with being based in China but also possibly to sidestep Chinese laws that curb cooperation with US investors. <\/p>\n Beijing\u2019s review focuses on whether Manus should have secured an export licence before moving staff and technology to Singapore \u2013 a step that would give China leverage over the deal despite the relocation. Beijing is also concerned the acquisition might prompt other start-ups to move abroad to evade local oversight.\u00a0<\/p>\n In AI, algorithms are now treated as strategic assets, and their \u201cnationality\u201d is shaped less by a company\u2019s address than by where its code was written and its data trained.\u00a0<\/b>An example: China relied on similar export-control tools during Washington\u2019s earlier push to force ByteDance to sell TikTok\u2019s US operations<\/span><\/a>. Clearly, shifting to a neutral jurisdiction offers less protection than many founders had hoped.<\/p>\n For Manus, the pressure has come not just from China. The group\u2019s move to Singapore was driven by US investment restrictions too. A US-led funding round drew questions from the US Treasury, prompting the company to distance itself from China. <\/p>\n The immediate risk to Singapore is obvious.\u00a0<\/b>Its role as a bridge between the US and China in AI is no accident: Singapore has built the regulatory footing, digital infrastructure and connectivity that make it a practical base for AI firms. Those companies bring opportunities: more talent, more capital and a chance for Singapore to become a base for AI work across South-east Asia.<\/p>\n Yet Singapore\u2019s position between the US and China comes with real exposure. A small, trade-dependent economy \u2013 with exports and imports worth more than 300 per cent of GDP \u2013\u00a0<\/b>is vulnerable if either side turns the screws on technology flows.\u00a0<\/p>\n