US lawmakers accuse VC giants of financing China's military-linked firms, Unveiling national security concerns
US lawmakers are saying big investment companies helped fund Chinese firms linked to the military. This has raised worries about national security. The accusations highlight the complex issues when money and global tensions mix.
A US House of Representatives Committee consisting of lawmakers has levied accusations against three VC companies over financing Chinese companies that are linked to the Chinese military. The committee headed by Republican Congressman Mike Gallagher released the report that contains shocking allegations.
Sequoia Capital China, Qualcomm Ventures, GGV Capital, GSR Ventures, and Walden International fuelled at least $3 Billion into Chinese tech companies. The Chinese tech companies are linked to the military departments of China raising eyebrows in Washington DC. These Chinese tech companies also have a record of supporting the Chinese military and the repression of minorities.
The report has also exposed US companies that are in partnership with Chinese companies in the Artificial Intelligence and semiconductor arena. The US has already barred home companies from instigating partnerships with Chinese companies in the two future-ready sectors over fears of data manipulation in China.
The report read, “The status quo is untenable... Decades of investment-including funding, knowledge transfer, and other intangible benefits U.S. VCs have helped build and strengthen the PRC's (People's Republic of China) priority sectors.”
US President Joe Biden was requested to stop US companies from investing in Chinese companies that have ties with the authoritarian military. The Chinese military has used the help of tech companies to increase their surveillance and maintain an in-depth database of the locals.