US VC Firms Under Scrutiny for Billions in Investments in Chinese Military-Linked Tech
A House panel report revealed that five U.S. venture capital firms invested over $3 billion in Chinese companies involved in AI, critical technologies, and with links to China's military and human rights abuses. The report highlighted concerns about the flow of funds and expertise from U.S. VCs into sectors supporting the Chinese Communist Party's (CCP) military and surveillance state. The firms, including GGV Capital and Sequoia Capital China, were found to have invested in Chinese AI companies supporting the CCP's human rights abuses and military, as well as in the semiconductor sector advancing the CCP's ambitions. Lawmakers recommended immediate restrictions on outbound investment in entities tied to the People's Liberation Army or forced labor and genocide, and sector-based restrictions in critical and emerging technologies.