☕️ Good morning friends,

One of our favorite German words is ENTSTRICKUNGSSTEUER (exit tax). Every state hates it when capital, knowledge, and talent flow out.

This time it hit the Manus AI founders. More on that in the Top Bit.

Also in today's issue:

• BASF makes largest single investment ever in China

• Japan's last shipping line to Europe rescued

• EU pumps €560 million into Vietnam's energy transition

Enjoy reading!

The following stories will be exclusive to our premium community starting Monday.

Asia back in rally mode: South Korea's benchmark index surged +4.39%, fueled by a Wall Street rally (Dow +1.38% to 46,208) and de-escalation signals from the Middle East. Hang Seng (+1.6%), Nikkei (+1.1%) and CSI 300 (+0.5%) followed suit, while Brent crude bounced back +3.5% to $103.70.

TOP BIT

China stops Meta deal – founders not allowed to leave

China's most viral AI stars are stuck. The government has banned the two Manus founders Xiao Hong and Ji Yichao from leaving the country after Meta acquired the startup for an estimated $2 to 2.5 billion.

China increasingly views the sale of AI elite technology to US giants as a threat to national security.

The ten-day deal

The numbers behind the acquisition are breathtakingly fast:

• In April 2025, Manus was still worth $500 million, Benchmark Capital led the Series A of $75 million.

• Eight months later, Meta closed the acquisition, negotiated in just ten days. For early investors Tencent and HongShan Capital (formerly Sequoia China): a 4x return.

• Manus had already reached $100 million in annual revenue by then, faster than any startup before.

Operation "Singapore-washing"

Manus was founded in China in 2022 (Beijing Butterfly Effect Technology), but relocated headquarters and team to Singapore in 2025 – shortly after a funding round from US VC Benchmark Capital.

The strategy is called "Singapore-washing" in the industry: Chinese founders, Chinese technology, but a Singapore mailbox address.

The NDRC charges:

• FDI violations: Manus allegedly failed to properly report ownership changes and Singapore relocation

• User data risks: Potential endangerment of Chinese user data

• "Selling young crops": Beijing fears other startups will follow this model

The extreme scenario: unwind the deal

An "insider" to the FT: "One extreme outcome would be to unwind the transaction." Problem: Meta has already integrated Manus AI agent software into its platform.

"The transaction complied fully with applicable law. We anticipate an appropriate resolution." Meta's statement

All Details & Data: Wall Street Journal, Yahoo Finance

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MARKET BIT

BASF: $10.4B for Southern China, Largest Single Investment in Company History

Chemical giant BASF has officially opened its new Verbund site in Zhanjiang, southern China. At roughly 8.7 billion euros ($10.4 billion), it is the largest single project in the company's 160-year history.

The details

The site covers four square kilometers in Guangdong province, making it BASF's third-largest Verbund globally after Ludwigshafen and Antwerp.

At its core: a steam cracker with 1 million metric tons of ethylene capacity per year, operational since January 2026. It is the first cracker worldwide to run its main compressors on 100% renewable electricity.

Several downstream plants are already running: ethylene oxide, ethylene glycol, polyethylene. First production started in November 2025, months before today's official ceremony. 2,000 employees work at the site.

Revenue target by 2030: up to 1.2 billion euros from the Zhanjiang site alone.

Why Southern China:

BASF currently generates only 13% of its global revenue in China, despite the country accounting for over 50% of worldwide chemical demand. Between 2024 and 2035, BASF expects 75% of global chemical market growth to come from China.

• Asia board member Stephan Kothrade calls the company's China share simply "too low."

The bet behind it

Back in Ludwigshafen, BASF is simultaneously cutting billions in costs and slashing jobs. In Zhanjiang, the company is making the largest single-site investment in its history.

The contrast is deliberate: BASF is shifting its growth focus to Asia.

The company is knowingly accepting the geopolitical uncertainties that come with it. Whether the 8.7 billion euro bet pays off depends less on the technology in Zhanjiang and more on whether China actually delivers 75% of global chemical growth over the coming decade.

Sources: Handelsblatt, Der Aktionär, Chemie.de

STARTUP LAB

🇯🇵 Japan's Spiber gets rescue from Masayoshi Son's daughter: Maya Kawana is taking over the troubled biotech unicorn valued at over $1.2B. Spiber makes bio-fibers from spider silk protein as a polyester replacement. Kawana, ex-Goldman Sachs, starts restructuring in H1 2026.

🇹🇭 Thailand's Amity raises $100M Series D ahead of planned IPO: EDBI led the round, joined by Asia Partners and SMDV. Total raised: $160M. Amity builds vertical AI for enterprise clients in retail and telecom, now scaling across Southeast Asia and Europe.

🇮🇳 India's Swish raises $38M for 10-minute fresh meals: Hara Global and Bain Capital Ventures led the Series B. Swish runs neighbourhood kitchens built for speed with dedicated prep, cooking and assembly lines. Third raise in 18 months, now expanding to more Indian cities.

HIGHLIGHTS 

🇮🇩 Indonesia slaps export tax on nickel: President Prabowo has approved an export tax on nickel. Prices on the London Metal Exchange jumped 2.7% on the news. Indonesia is the world's largest nickel producer and needs the revenue to plug growing budget gaps. The exact tax rates are still being negotiated.

🇯🇵 Japan's last shipping line to Europe rescued: The only direct container route between Japan and Europe nearly vanished after Ocean Network Express (ONE) scrapped it in December. French carrier CMA CGM stepped in with a new service connecting Kobe, Nagoya and Yokohama to Northern Europe starting April. Japanese ports have lost more than half their long-haul connections since 2010 - down from 76 to 36 weekly departures.

🇻🇳 EU commits 560 million euros to Vietnam's green transition: EU Commissioner Jozef Sikela announced an investment package for sustainable transport and clean energy at a forum in Hanoi. Vietnam and the EU have eliminated 99% of tariffs since upgrading to a Comprehensive Strategic Partnership. Both sides now want to deepen cooperation on infrastructure, energy transition and the circular economy.

🇨🇳 Semicon China: 42% of global chip capacity by 2028: At the world's largest semiconductor trade show in Shanghai, industry body SEMI projects China's share of global wafer fabrication will rise from 32% (2025) to 42%. The drivers are AI agents consuming far more compute than previous AI products and advances in advanced packaging. Over 180,000 visitors are expected this year.

MORE ASIABITS

• Free guide: AI Automation for Beginners

• Humanoid Robotics Report: The $6 Billion Bet

• Interactive tool: China Dependency Index™

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