Butterfly Effect, the startup behind AI agent Manus, has shut down its entire China team to reduce geopolitical risks, reports The Information. In May, the founders Red Xiao, Peak Ji, and Tao Zhang reportedly moved to Singapore, where the company is now building its new headquarters. It is also hiring in Singapore, the U.S., and Japan, and has opened offices in San Mateo and Tokyo. Until last week, several dozen employees were still based in China, but many have since left. Manus targets the U.S. market, where Chinese connections are increasingly seen as a risk.