Many Chinese AI startups are gravitating towards Singapore due to US trade sanctions blocking their access to new technologies. This move to Singapore also serves as a way for these companies to distance themselves from their Chinese origins, a phenomenon dubbed "Singapore-washing."
Wu Cunsong and Chen Binghui, founders of Tabcut, a Chinese AI startup, faced challenges in China due to a lack of venture capital. This led them to relocate their company to Singapore, which provides better access to global investors and offers a neutral ground for purchasing cutting-edge technologies, unlike China, which is restricted by US export controls.
Singapore's less stringent AI regulations, ease of setting up businesses, and a supportive entrepreneurial environment also contribute to its appeal. Meanwhile, China's strict regulations and limited access to advanced technologies are prompting AI startups to consider fully operating outside China. Notable examples include Wiz Holdings Pte., a successful AI startup established in Singapore by Jianfeng Lu, and Climind, a Hong Kong-based startup preparing to relocate to Singapore.
Singapore's burgeoning AI ecosystem, government support, and stable political environment also make it an attractive destination. While some Chinese AI companies remain in their domestic market, the escalating geopolitical tensions and increasing regulations are making global expansion more challenging, leading many to consider relocating to Singapore for a conducive business environment, easier access to global markets, and stable politics.
