© Reuters. FILE PHOTO: Chairman U.S. Consultant Mike Gallagher (R-WI) speaks with former Secretary of State Mike Pompeo, and former CIA director and former protection secretary Leon Panetta, throughout a listening to of the Home Choose Committee on the Strategic Competitio
WASHINGTON (Reuters) -Sequoia Capital China, Qualcomm (NASDAQ:) Ventures and three different enterprise capital corporations plowed no less than $3 billion into Chinese language tech corporations that help Beijing’s navy and its repression of minorities in Xinjiang, a U.S. congressional report alleged on Thursday.
The Home of Representatives’ choose committee on China, led by Republican Congressman Mike Gallagher, launched the report, which additionally scrutinizes investments made by GGV Capital, GSR Ventures and Walden Worldwide in Chinese language synthetic intelligence and semiconductor corporations with unsavory ties.
The Committee known as on the Biden administration to limit U.S. funding in Chinese language corporations sanctioned by the U.S. authorities over ties to China’s navy or its repression of minorities and urged it to bolster current U.S. curbs on U.S. funding in China to incorporate extra sectors.
“The established order is untenable… A long time of funding—together with funding, data switch, and different intangible advantages—from U.S. VCs have helped construct and strengthen the PRC’s (Folks’s Republic of China) precedence sectors,” the report stated.
GGV Capital stated in a press release it deliberate to separate into two unbiased corporations by the tip of March: GGV Capital U.S. and GGV Capital Asia. It stated the businesses have been in compliance with all relevant legal guidelines and rules.
Richard Lim, managing director of GSR Ventures, declined remark. Sequoia Capital China, now often called HongShan, Walden Worldwide and the White Home didn’t reply to requests for remark. Qualcomm Ventures couldn’t be reached for remark.
A Sequoia Capital spokesperson stated that, as of Dec. 31, 2023, Sequoia Capital (the US/Europe enterprise enterprise), HongShan (previously often called Sequoia China), and Peak XV (previously often called Sequoia India/SEA) are totally unbiased corporations with distinct manufacturers. “Sequoia Capital continues to deal with investing in know-how corporations within the U.S. and Europe,” its spokesperson stated. “We take U.S. nationwide safety points critically and have at all times had processes in place to make sure compliance with U.S. regulation.”
The Chinese language Embassy in Washington stated using nationwide safety and human rights as a pretext to limit U.S. investments in China “will undermine the precept of free commerce…, destabilize the worldwide…provide chains and serve the pursuits of nobody.”