A bipartisan congressional investigation has revealed that several US venture capital firms, including GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital, and Walden International, invested billions in Chinese technology companies operating in semiconductor, AI, and cybersecurity sectors. The report, released by the House Select Committee on China, highlights investments totaling over $1.9 billion in AI companies and another $1.2 billion in the semiconductor sector, which directly or indirectly support China’s military and surveillance initiatives. The committee flagged instances where venture capital memorandums indicated preferences for investments supporting the Chinese government’s surveillance and technological supremacy goals. Specifically, investments by firms like Sequoia Capital in companies like Qihoo360 and EverSec raised concerns due to their ties to China’s military and cyber operations. The report calls for Congress to impose restrictions on US investments in Chinese entities linked to the People’s Liberation Army (PLA) and to consider additional measures targeting critical technologies and human rights abuses perpetrated by the Chinese government.

Read more: https://www.securityweek.com/lawmakers-want-clampdown-on-american-vcs-funding-chinese-tech-companies/