By Li Panpan
(JW Insights) Jul 21 -- A clutch of American venture-capital firms are being investigated by a congressional committee over their funding of Chinese tech companies—part of a push in Washington to scrutinize and potentially ban such deals, reported Wall Street Journal on July 19.
JW Insights summarized that nearly 20 Chinese semiconductor and AI-related investee companies are involved. They include Megvii, Cloudwalk Technology, Yitu Tech, SenseTime, Intellif, iFlytek, Horizon Robotics, Moore Threads, Biren Technology, Denglin AI, Cygnus Semiconductor, Axera Tech, Smarter Micro, SMIC, Jingneng Microelectronics, Sichain Semiconductor, Zongmu Tech, and Gantu Technology.
The US House's select committee on the China threat this week notified GGV Capital, GSR Ventures, Walden International, and Qualcomm Ventures - the investment arm of chip company Qualcomm - that the panel is examining many of their investments in Chinese companies involved in semiconductors, artificial intelligence, and quantum computing, said Wall Street Journal.
"We shouldn't be funding our own destruction," the panel's chairman, Republican Rep. Mike Gallagher of Wisconsin, said in an interview.
The committee's top Democrat, Rep. Raja Krishnamoorthi of Illinois, said that American money and expertise shouldn't be used to enable China's "advancements in the technologies that could undermine our national security or American values."
While the committee doesn't have lawmaking authority, it does have subpoena powers. Gallagher said the goal of the investigation is to compile a record that would help Congress pass a strong bill to restrict problematic investment in China, said the Wall Street Journal report.
China opposes the US politicizing and weaponizing of trade and tech issues. It is in no one's interest to place arbitrary curbs on normal technology cooperation and trade, violate the market economy principles and destabilize global industrial and supply chains, said China's Foreign Ministry Spokesperson Mao Ning on the matter.
"We hope that the US will follow through on President Biden's commitment of not seeking to 'decouple' from China, halt China's economic development or contain China and create a sound environment for China-US economic cooperation and trade", added Mao.
