TLDR: U.S. venture capital firms have invested billions of dollars in Chinese companies that support the military, surveillance state, or the genocide of the Uyghur people, according to a report by the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party. The report focuses on five major venture capital firms – GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital China, and Walden International – and highlights the investments made in artificial intelligence and semiconductor companies. The report suggests that the U.S. should restrict investments in companies with ties to the Chinese military, forced labor, or genocide and implement more outbound investment restrictions in China’s critical and emerging technology sectors.
Billions of dollars invested in companies in the People’s Republic of China (PRC) are being directed towards the military or the systematic eradication of Uyghurs.
Five major U.S. venture capital firms invested at least $3 billion in Chinese critical technology companies that aid the country’s military, surveillance state, or the Uyghur genocide.
In some cases, internal VC memorandums stating that Chinese investments were more attractive if the company supported the Chinese government’s surveillance state or strategy for technological supremacy were uncovered.
Five firms were focused on – GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital China, and Walden International. They invested over $1.9 billion in artificial intelligence companies that support the Chinese military and/or China’s human rights abuses, and a further $1.2 billion in China’s semiconductor sector. The investments provide credibility and know-how to problematic PRC companies.
Lawmakers suggest that the U.S. should restrict investments in companies sanctioned or red-flagged by the government for ties to the Chinese military, forced labor, or genocide and implement more outbound investment restrictions in areas related to China’s critical and emerging technology sectors.
