Chinese startups are setting up operations in Singapore to reassure global clients that their intellectual property is insulated from Beijing’s oversight, while U.S. firms are drawn by easier access to international talent amid tightening visa rules at home, industry executives and analysts said.

Kerry Goh, chief executive of Kamet Capital, said relocating operations to Singapore provides “comfort” to international clients by ensuring data and intellectual property are governed locally. He cited support for a new AI video venture launched by former executives of Alibaba as an example of this shift.

The trend reflects broader fallout from intensifying Sino-U.S. competition over advanced technologies, including export controls and talent mobility restrictions. Policies under U.S. President Donald Trump, particularly changes to H-1B visa rules, have made it harder for companies to deploy global workforces in the United States.

Singapore has responded with incentives aimed at building an AI-focused economy, including fast-track visas for skilled workers and tax benefits for intellectual property registration. Officials say these measures have strengthened the country’s appeal as a technology hub.

Major global firms are expanding their presence. AI developer Anthropic is planning a Singapore office, according to people familiar with the matter, joining companies such as OpenAI, Meta’s Superintelligence Labs, and Google’s DeepMind.

At the same time, the shift has raised concerns among policymakers. Washington has tightened restrictions on advanced chip exports, including limits on sales by Nvidia to China, while Beijing has reportedly imposed constraints on talent mobility for some AI firms expanding overseas.

Analysts warn Singapore’s growing role as a “neutral” jurisdiction could draw scrutiny from both sides. Chong Ja Ian, a political scientist at the National University of Singapore, said the city-state risks being viewed as a grey zone for technology transfers, potentially prompting regulatory pushback.

Despite such risks, companies continue to be attracted by Singapore’s streamlined visa processes, with some employment passes approved within days, and its reputation as a stable, business-friendly environment.

The three-day visit, which started on Tuesday, comes days after the EU agreed to overhaul its customs system, targeting largely Chinese e-commerce platforms with stricter safety checks and potential fines for selling illegal or non-compliant goods.

A nine-member delegation led by Anna Cavazzini, chair of the European Parliament’s Internal Market and Consumer Protection committee, met officials from China’s market regulator and members of the National People’s Congress in Beijing, according to statements from the parliamentary body.

During discussions with China’s State Administration for Market Regulation, EU lawmakers highlighted concerns over what they described as a high influx of dangerous and non-compliant products entering the European market from China.

The talks also covered the liability of online marketplaces and the need to ensure fair competition.The delegation raised broader issues including forced labour, protection of minors online and longstanding concerns about access for European companies to the Chinese market, the parliamentary committee said.

Beijing welcomed the visit as an opportunity to stabilise relations following its decision last year to lift sanctions on several EU lawmakers, a move seen as an attempt to ease trade tensions at a time of growing friction with the United States.

China had imposed sanctions in 2021 on 10 EU individuals and four entities in response to European measures targeting Chinese officials over alleged human rights abuses in Xinjiang.

The EU is grappling with a surge in low-value e-commerce imports, with 5.8 billion parcels entering the bloc in 2025, more than 90% of which are estimated to originate from China.

Under current rules, parcels valued below 150 euros are exempt from customs duties, a threshold that has supported the rapid expansion of platforms such as Shein, Temu and AliExpress.

EU lawmakers are expected to meet representatives from major Chinese e-commerce firms during the visit, including Shein, Alibaba and Temu.

The meeting with Shein follows a February investigation into the sale of child-like sex dolls on its platform, adding to regulatory scrutiny of online marketplaces operating across borders.

Michael Evans, president of Alibaba, made the comments in a meeting with Erdogan, according to a statement from the company’s Turkish unit. It did not specify when the investment would be made.

Evans also said Alibaba has invested $1.4 billion in Turkey through its unit Trendyol, one of Turkey’s best known e-commerce platforms, the statement said.

Erdogan is in the United States to attend the 78th session of the U.N. General Assembly.

Trendyol, whose president Caglayan Cetin also met with Erdogan, said Evans shared details about new investments such as a data centre and a logistics centre in Ankara and an export operation centre at Istanbul Airport.