Cracking Down on American VCs Fueling Chinese Tech Startups

A congressional investigation has found that several US venture capital firms invested billions of dollars in Chinese technology companies operating in sectors that pose a threat to US national security. The report by the House Select Committee on China singled out venture firms GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital, and Walden International for pouring investments into Chinese companies that support Beijing’s military and surveillance state. The report recommends that Congress restrict US investments in Chinese entities with ties to the People’s Liberation Army, forced labor, or genocide. It also calls for sector-specific restrictions on outbound investment related to emerging technologies, military capabilities, and human rights abuses.