Airwallex is relocating more than 100 employees out of China as it pursues US expansion, according to sources familiar with the plan. The payments company, founded in Australia in 2015, has been moving staff who don't work on China-facing roles to other offices. This follows public accusations from Silicon Valley investor Keith Rabois that Airwallex operates as a "Chinese backdoor into sensitive American data."

The staff relocations respond directly to US data security restrictions. Airwallex's spokesperson cited Executive Order 14117's requirements on cross-border data flows as the primary driver, calling the shift part of broader industry practice. Despite the moves, the company maintains significant offices in Shanghai and Hong Kong, noting China remains vital for engineering talent recruitment.

Airwallex's global ambitions face scrutiny as geopolitical tensions intensify. The company secured a Chinese payments license in 2022 and announced dual headquarters in Singapore and San Francisco last year to compete with Stripe and Wise. Its December fundraising round raised $330mn at a valuation of $8bn, with Tencent's stake diluted below 10% and new US investors including Robinhood Ventures and T Rowe Price.

The controversy illustrates how financial technology firms navigate competing regulatory regimes while expanding internationally. Airwallex's compliance-focused restructuring may signal broader industry adjustments as US-China rivalry reshapes cross-border business operations and data handling practices.