Why AI Startup Manus Abandoned China: Funding, Strategy, and Market Shift

AI startup Manus announced a complete withdrawal from China, disbanding its entire local team and blocking all Chinese IP access to its website.

After a rapid four‑month rise that positioned it as a potential "next DeepSeek," the company abruptly shifted its headquarters to Singapore, a move confirmed by co‑founder and CPO Zhang Tao at the SuperAI conference on June 18.

Manus also halted all Chinese social‑media accounts, removed its presence from domestic platforms, and began large‑scale hiring in Singapore for roles ranging from AI agents and DevOps to product management, offering salaries up to $18,000 per month for senior engineers.

Despite launching a Pro service priced similarly to ChatGPT Pro, monthly active users fell from roughly 20 million in March to about 10 million in May, according to aicpb data.

The company secured a $75 million investment led by Benchmark, now under review by the U.S. Treasury for potential violations of the Foreign Investment Risk Review Modernization Act, prompting Manus to adopt a Cayman‑Singapore‑China corporate structure to mitigate compliance costs.

Many Chinese engineers were either relocated to Singapore or received severance packages (N+3 or 2N), while a core team of about 40 remained.

Manus' exit reflects broader challenges faced by Chinese AI firms navigating tightening regulations, financing scrutiny, and the strategic need to focus on overseas markets.