Chinese tech startups, including Moonshot AI and DeepRoute.ai, are exploring the possibility of relocating their corporate registrations back to China following inquiries from the China Securities Regulatory Commission about overseas equity structures. These companies are consulting with legal advisors but have not yet made final decisions. Meanwhile, Shanghai-based AI model developer StepFun has begun dismantling its overseas equity structure to facilitate regulatory approval for a Hong Kong IPO. The regulatory scrutiny intensified after Meta's $2 billion acquisition of Manus, an AI company founded by Chinese entrepreneurs, was ordered to be rescinded. This has prompted a broader review of the "domestic operations, overseas incorporation" model. Dismantling a VIE structure is complex, often taking six to twelve months, and involves repurchasing offshore equity and establishing joint ventures. Analysts warn that comprehensive restrictions on VIE structures could severely impact Chinese startups' ability to secure overseas dollar-denominated funding.