China blocks Meta's acquisition of Manus AI

• It also signals an end to "Singapore washing," a corporate sleight of hand that's helped several Chinese tech companies secure foreign investment and commercial contracts.

Catch up quick: Manus was domiciled in the Cayman Islands, but was otherwise a Chinese company when U.S. venture firm Benchmark led its $75 million Series B round last spring.

• That investment sparked a Treasury Department investigation to determine if it violated outbound investment laws.
• Benchmark is said to have invested with the understanding that the startup's 100 or so China employees would move south to Singapore, which they quickly did.
• Meta acquired the company late last year, with China soon opening an investigation.

What they're saying: In a statement provided to Axios, Meta suggests that the matter isn't yet settled:

• "The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry."

The bottom line: It's unclear how or if Meta could unscramble the egg.