Manus AI's 'de-China playbook is a trap

Rebranding bid: The website for the Manus AI agent arranged on a computer in Hong Kong.Manus is doing everything it can to sever any ties to the mainland while its parent company Butterfly Effect reportedly eliminated all its China-based jobs last week. —Bloomberg

WHEN Chinese startup Manus previewed an artificial intelligence (AI) agent earlier this year, it went mega-viral. It came on the heels of DeepSeek, when global excitement over China’s AI breakthroughs was at a fever pitch, and nobody wanted to miss out on the next surprise hit.

Now, Manus is doing everything it can to sever any ties to the mainland. It relocated its headquarters to Singapore, and its three co-founders have made the move abroad as well.

Butterfly Effect, the company behind Manus, reportedly eliminated all its China-based jobs last week.

It has also scrubbed content from domestic social media platforms Weibo and Xiaohongshu (also known as RedNote), despite maintaining an active presence on X.

Users in China trying to access the site this week were met with the message that it’s “not available in your region,” a departure from a previous memo stating that the Chinese version was under development.

It’s the choice these tech firms are forced to make in the current geopolitical climate: stay in the hyper-competitive domestic market or go for more lucrative growth overseas. You can’t have both.

Moving abroad means going through the arduous process of trying to “de-China” the company’s origins.

It’s a shame given this background is what drove so much hype about Manus in the first place.

Chinese firms have also traditionally had an edge in consumer tech, with access to a vast pool of affordable engineering talent and a hardworking culture. Plus, dubious identity rebrands almost never work.

Manus’ decision to recast as a Singapore company follows the furore that emerged in the United States after prominent Silicon Valley venture capitalist (VC) firm Benchmark (an early backer of the likes of eBay Inc and Uber Technologies Inc) announced it was leading a US$75mil funding round in Butterfly Effect.

Fellow VCs accused Benchmark of “investing in your enemy” and equated it to backing Russian efforts during the space race.

The plans have also come under US Treasury Department scrutiny over new rules related to investments in certain Chinese technology.

It will be very hard for Manus to ever rid the China label from its story, especially after all the attention it received.

Co-founder Ji Yichao was on the cover of Forbes China more than a decade ago, as one of the 30 under 30 entrepreneurs in the country. State-backed mouthpieces have also celebrated Manus’s rise, so trying to cleanse its Chinese-ness risks domestic backlash.

It’s not the first time this has happened. ByteDance Ltd’s TikTok has gone to great pains to rebrand as an American and Singaporean company and assuage Washington’s fears about its Beijing origins. But none of this stopped the United States from passing a law last year requiring the parent company to divest from the app that doesn’t even operate in the mainland, or be banned due to perceived national security concerns. This doesn’t bode well for Manus.

The AI sector has become a lightning rod for China hawks in the United States, who view any consumer-facing application using the tech from its geopolitical nemesis as a threat.

AI video startup HeyGen Inc garnered investment and a raft of US customers after making the move from China, yet was still singled out by lawmakers over potential ties to the Communist Party.

Its co-founder said it’s been “disappointing” to see his heritage treated as something he should “be ashamed of.”

Wrapped up in national security worries is more than a hint of xenophobia.

Targeting consumer tech firms based on the national origins of their founders is an ineffective strategy.

US concerns about potential threats that data could leak to China or that the CCP could influence algorithms should implement more comprehensive rules to mitigate these risks.

When it comes to buzzy new technology like the Manus AI agent, industry-wide standards are overdue.

Tools that are designed to allow software to take on increasingly complex tasks on their own carry unique risks, including who is liable when things go awry and how much control should be ceded to machines.

Global policymakers should address these concerns regardless of where the AI agent comes from.

Icing out the best and brightest tech minds risks leaving Silicon Valley blind to innovation happening elsewhere. It’s in America’s interest to do more to support these founders by bringing their talents and breakthroughs to the United States. —Bloomberg

By Catherine Thorbecke,  is a Bloomberg Opinion columnist covering Asia tech. The views expressed here are the writer’s own.

CAP Calls for Vacancy Tax and Tighter Controls to Curb Property Speculation

The Consumers Association of Penang (CAP) strongly supports the introduction of a vacancy tax on residential properties that are left unoccupied for extended periods. We believe this measure is urgently needed to address the deepening problems of property speculation and declining housing affordability in Malaysia.

A vacancy tax typically applies to properties that remain vacant — unsold or unrented — for more than six months in a year. In countries such as Canada and Australia, particularly in cities like Melbourne, this tax is set at between one and three per cent of the property or land value. Its primary aim is to deter property speculation, particularly in the medium-cost segment, where rising prices in the subsale market have increasingly placed home ownership beyond the reach of middle-income earners.

According to the Khazanah Research Institute, housing prices in Malaysia rose by an average of 5.8 per cent per year between 2010 and 2022 — well above the healthy growth range of three to four per cent. As a result, many in the M40 income group find it difficult to purchase their own homes. In urban areas, the typical ‘modern’ three-bedroom apartment ranges from 800 to 1,000 square feet. This limited space is not conducive to multi-generational or extended family living, nor does it offer adequate privacy or comfort for those forced to share with other families.

Speculators often compete directly with genuine homebuyers, inflating demand and thereby encouraging developers to acquire more land to keep up with what is essentially artificial pressure. In land-scarce areas like Penang, this has resulted in a rise in land prices and a growing reliance on costly land reclamation from the sea.

It is also worth noting that many apartment blocks are not fully occupied, despite having been sold. In these developments, owners of vacant units — who are not living in them and cannot easily sell or rent them out — often neglect their obligations to pay maintenance fees. This undermines the upkeep of the building and penalises residents who do live there.

At present, many residential properties, particularly in urban centres, remain empty while thousands of Malaysians continue to struggle to find homes they can afford. The property market has become increasingly dominated by those who treat housing as a speculative investment rather than a basic human need. This trend has led to inflated prices and a false sense of scarcity, especially in cities where housing demand is greatest. A vacancy tax would act as a strong disincentive to leave properties idle and would encourage owners to either rent out or sell them, returning more units to the active housing market.

In addition to the vacancy tax, CAP calls on the government to review and strengthen the Real Property Gains Tax (RPGT). The current system fails to adequately discourage short-term speculation. We propose a more progressive model that imposes significantly higher tax rates on profits from properties sold within a short holding period.

We also urge a revision of stamp duty rates, with higher charges levied on the purchase of second and subsequent residential properties. These measures should be especially firm in cases where the property is not intended for owner-occupation, or when purchased by foreign buyers. In doing so, the government can help ensure that Malaysians are not priced out of home ownership by those seeking to profit from housing as an asset.

Moreover, CAP recommends tighter controls on housing loans. Banks and financial institutions should apply stricter lending criteria for individuals who already own multiple residential units. Loan-to-value ratios should be lowered in such cases to reduce excessive borrowing for speculative purposes.

Unless the government introduces comprehensive policy reforms, Malaysia’s housing sector will continue to favour investors at the expense of ordinary citizens. It is the government’s duty to uphold the principle that housing is a fundamental right, not a speculative commodity.

CAP therefore urges policymakers to act with urgency and resolve. The combined approach of introducing a vacancy tax, strengthening RPGT, revising stamp duties, and tightening housing loan regulations will go a long way towards restoring balance, fairness and accessibility in the property market.

 Mohideen Abdul Kader

President
Consumers Association of Penang

US trade wars will hit households worldwide

 BOE calls for correction of financial imbalances

Sustained stability: Bailey attends the annual Mansion House dinner in London. The Bank of England governor is calling for greater cooperation between countries, particularly between China and the United States. — Reuters 

WASHINGTON: US President Donald Trump’s trade war with the rest of the world is the wrong approach to addressing imbalances in the global economy and will harm households, Bank of England governor Andrew Bailey says.

In his annual Mansion House speech, Bailey called for greater cooperation between countries – particularly the United States and China – to resolve “unsustainable” trade and financial imbalances that are distorting economies and lie behind escalating political tensions.

“How to reconcile an open world economy with national interests is a very old issue,” he said in comments that appeared to be directed primarily at Washington.

“The rules of the process have to be accepted and the imposition of rules by one player, however dominant, isn’t a recipe for sustained stability.”

Bailey’s comments come just days after Trump threatened 30% tariffs on goods imported from Mexico and the European Union.

The President has already imposed 30% tariffs on products from China and a minimum 10% tariff on all imports worldwide with some exceptions. Economists have warned that the levies will be a drag on global growth.

Trump is using tariffs to bring industrial jobs back to America, but Bailey warned his plans are likely to backfire

“Increasing tariffs creates the risk of fragmenting the world economy, and thereby reducing activity,” he said.

“It helps to remember that the key challenge we all face is to increase growth in the world economy: to grow the pie to support living standards for the people we serve, all of the time. It is as simple as that.”

China and the United States are at the heart of the problem, accounting for “almost 40% of the world’s current account imbalances”, Bailey, who was recently made chair of the multi-national Financial Stability Board, said. 

The United States runs a current account deficit, importing more than it exports, and runs a large budget deficit supported by capital inflows due to the dollar’s reserve currency status.

China is the reverse, running a trade surplus with excess domestic savings due to weak “social safety nets” that are invested abroad.

America’s trade war is also economically incoherent, the governor suggested.

“The United States does need to explain how it can regard its internal imbalance as sustainable and its external imbalance as not so,” he said.

“And China needs to explain how it will tackle its persistently weak domestic consumption.”

A better approach would be to use the world’s multilateral institutions like the International Monetary Fund and the World Trade Organisation to rebalance the trading and financial systems, he argued.

Stronger global institutions, working hand-in-hand, could help the process of adjustment.

Bailey also said there is an “urgent need for innovation” in payments by the banking sector as he continued to raise doubts over the future role for stablecoins and a digital pound for consumers.

The governor has sounded more wary over the need for a UK central bank digital currency in recent months, and said on Tuesday that he was yet to be convinced that the “natural next step was to create a new form of money rather than put digital technology into retail payments and bank accounts”.

Bailey also reiterated his cautious stance over the emergence of stablecoins as excitement grows in the wake of landmark legislation passed in the US Senate aimed at normalising the technology.

Stablecoins are typically backed by an asset such as the US dollar and are designed to hold a steady value, contrasting with the price volatility seen in other cryptocurrencies such as bitcoin.  

“There may well be a role for stablecoins going forward, but I don’t see them as a substitute for commercial bank money,” Bailey said. — Bloomberg

Malaysia-NZ trade set to soar

 

 AUCKLAND: Trade between Malaysia and New Zealand is expected to increase by 50% in the next five years, says Datuk Seri Dr Ahmad Zahid Hamidi.

The Deputy Prime Minister said forging closer bilateral and trade ties with New Zealand was more crucial now in light of the changing global landscape.

“Our shared target to increase Malaysia-New Zealand trade by 50% by 2030 is not only achievable but necessary in a world where regional resilience matters more than ever,” he said during the Asean-New Zealand Business Council Engagement session held here yesterday.

He said trade agreements such as the Malaysia-New Zealand Free Trade Agreement (MNZFTA) and Asean, Australia, New Zealand Free Trade Area (AANZFTA) serve as a catalyst for boosting bilateral trade.

In 2024, he said the trade volume reached RM10.72bil (US$2.34bil), making Malaysia New Zealand’s second-largest trading partner within Asean.

“These numbers aren’t just statistics; they reflect confidence, connectivity and commitment between our economies,” added Ahmad Zahid, who is in New Zealand for a five-day working visit.

He said the MNZFTA also enabled 99.8% of New Zealand’s exports to enter Malaysia duty-free, with the AANZFTA also increasing exports to Asean by nearly 60% since 2010.

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Anwar advances Malaysia's diplomatic agenda

“The AANZFTA is working well and should continue to be strengthened. Malaysia has also doubled its usage of AANZFTA benefits, from RM5.8bil in 2016 to RM12.9bil in 2023,” he added.

With the recent upgrade to AANZFTA and the momentum created through the Regional Comprehensive Economic Part­nership (RCEP), Ahmad Zahid said that both nations were better positioned to build a fair, modern and sustainable trade architecture.

AANZFTA, a trade agreement between Asean member states, Australia and New Zealand, came into force in 2010 and is a key pillar in both nations’ ties with South-East Asia.

The upgrade of AANZFTA came into force on April 21 this year to further reduce export barriers while boosting trade in the region.

Ahmad Zahid said Malaysia was looking at three key areas – sustainability, digital transformation and food security – to deepen trade collaboration between the two countries.

“New Zealand, with 87% of its electricity sourced from renewables, is a leader in green transition. This aligns closely with Malaysia’s commitment to achieving net-zero emissions by 2050.

“There is vast space for cooperation in clean energy, carbon markets and low-carbon technology,” he added.

On Malaysia’s part, Ahmad Zahid said the MyDigital agenda complements New Zealand’s strengths in ICT (information, communication and technology), offering opportunities for joint ventures in AI, smart cities, cybersecurity and digital trade governance.

“The agri-food sector also offers enormous potential. As Asean’s middle class grows and consumption patterns shift, New Zealand’s reputation for quality, traceability and innovation fits well with Malaysia’s strengths in halal certification and regional logistics.”

Ahmad Zahid, who is also Rural and Regional Development Minister, said it was crucial that the bilateral economic partnership continues to be grounded in human connection. 

“Thousands of Malaysian students have studied in New Zealand and tourism between our nations continues to thrive. 

“These exchanges are not just heartwarming, they are the glue that holds economic ties together, builds trust and creates long-term understanding,” he added.

On economic growth between New Zealand and Asean, Ahmad Zahid said it must be inclusive of micro, small and medium-scale enterprises (MSMEs) so that the latter was not left behind.

To achieve this, he said it must entail improving access to trade finance, digital tools, and capacity building between Asean member states and New Zealand.

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China, Australia strengthen green energy, tourism cooperation during Albanese’s official visit

 

China Australia photo: VCG

Australian mining and metals multinational BHP Group on Monday announced cooperation with Chinese leading battery manufacturers Contemporary Amperex Technology Co Ltd (CATL) and BYD to accelerate its electrification of mining operations, as China and Australia eye strengthened cooperation during Australian Prime Minister Anthony Albanese's ongoing visit to China.

Melbourne-based BHP said it has signed memoranda of understanding (MoUs) with CATL and FinDreams Battery Co, a fully owned subsidiary of BYD Group, to collaborate on battery development for mining equipment and locomotives including rapid charging infrastructure, as well as energy storage and battery recycling, according to two separate press releases on its website.

The moves come as Albanese is on an official visit to China. According to the Australian Financial Review, top executives from BHP, Rio Tinto, Fortescue and Hancock Prospecting are among scores of business delegates travelling with Albanese.

Speaking before a meeting between Australian iron ore miners and Chinese steelmakers in Shanghai on Monday, Albanese framed green steel as a way to grow Australia and China's decades-long trade relationship, Reuters reported.
"Achieving the goal of the Paris Agreement would require the decarbonization of steel value chains, presenting an opportunity for Australia and China to progress our long-term economic interests," he was quoted as saying.

"Rio Tinto is working closely with our Chinese customers to support the development of low-carbon steelmaking technologies, leveraging Australia's high-quality iron ore and China's manufacturing expertise to drive real progress on emissions reduction," Kellie Parker, Rio Tinto Australia chief executive, told the Global Times on Monday. 

"This visit is a valuable opportunity to deepen collaboration between suppliers and steelmakers. We welcome the opportunity to participate in these discussions alongside the Prime Minister," Parker said.

China has been taking concrete steps toward its commitment to peak carbon emissions before 2030 and achieve carbon neutrality before 2060. Over the years, the country has made remarkable progress in clean energy development, emerging as a global leader driving both domestic decarbonization and international sustainable development.

China and Australia have sound cooperation in traditional energy fields such as natural gas and coal, and green energy is an emerging field that has enormous room for cooperation, Ning Tuanhui, an associate research fellow at the China Institute of International Studies, told the Global Times on Monday.

"Australia has abundant deposits of minerals including lithium, cobalt and rare earths, while China has technological advantages and rapid development in the new-energy industry. Given their complementarity, strengthened green energy cooperation is beneficial to both sides," Ning said, noting that China is a critical partner for Australia to boost energy transition and address climate challenges.

In addition to energy, Albanese also reportedly highlighted tourism and sporting ties with China during his visit - his second official visit to China but the first since his re-election in May. On Sunday in Shanghai, Albanese visited the headquarters of Chinese online travel platform Trip.com and witnessed the signing of an agreement between Tourism Australia and Trip.com, according to information the platform sent to the Global Times on Monday.

Video footage posted by ABC News also showed that on Sunday, Albanese took part in a morning workout at the iconic Shanghai Bund, accompanied by Shanghai Port FC's Australian coach Kevin Muscat, team captain Wang Shenchao and others. He was presented with a special commemorative jersey.

Amid increasingly stabilizing and improving ties between China and Australia over the past three years under the strategic guidance of the leaders of the two countries, Albanese's visit to China marks a pivotal step in further advancing bilateral economic and trade relations, Song Wei, a professor at the School of International Relations and Diplomacy at Beijing Foreign Studies University, told the Global Times on Monday.

China has been Australia's largest trading partner, export destination and source of imports for 16 consecutive years. The China-Australia Free Trade Agreement, which came into effect in 2015, has significantly boosted trade, with total trade surpassing $210 billion in 2024, according to an article by Chinese Ambassador to Australia Xiao Qian published by the People's Daily on Sunday. 

Strengthening dialogue, expanding the scope of economic cooperation and increasing people-to-people exchanges will bring more tangible benefits to bilateral cooperation, Song said.

"Given the complex and volatile geopolitical landscape, frequent high-level exchanges like this visit are needed to build mutual trust and strengthen the resilience of bilateral relations," Ning said.

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