Little-noticed US funding for China tech sector now attracts scrutiny

The Treasury Division might ask U.S. buyers to inform the division of funding actions in particular sectors and nations, much like the best way it tracks inbound capital flows as a part of the Committee on International Funding in the US, or the CFIUS course of, Weinstein stated. 

The Commerce Division additionally might require U.S. buyers to not pump cash into Chinese language firms on the U.S. entity record — a listing of overseas firms and people topic to licensing necessities or export management restrictions — Weinstein and Luong wrote of their report.

If the U.S. had been to close off the faucet on capital flowing to China, Chinese language firms would nonetheless be capable to increase capital, however would doubtless endure from being disadvantaged of the intangible information that comes from U.S. enterprise capital corporations, Weinstein stated. 

GGV Capital, recognized by Weinstein and Luong as “most lively in financing Chinese language AI firms” from 2015 to 2021, held “19 grasp courses on subjects equivalent to finance, expertise, technique, organizational construction, gross sales, and extra” as a part of its mentorship program in China, based on the report. 

GGV had a complete of 43 funding transactions involving Chinese language synthetic intelligence firms from 2015 to 2021, based on the report. GGV, which has workplaces in Menlo Park, Calif., and New York Metropolis, in addition to in Singapore, Shanghai and Beijing, didn’t reply to a voicemail looking for remark. 

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