China’s Tech Money Is Now Radioactive
Efforts by the United States to curb Chinese access to ‘critical and emerging technologies’ is putting increased scrutiny on foreign investment practices. The United States’ late-2022 export controls, especially, set off a flurry of activity surrounding American venture capitalists’ investments in Chinese tech startups.
The Biden administration is drafting an executive order aimed at curbing US companies’ ability to invest in high-tech Chinese startups like AI and quantum computing. At the same time, the inbound flow of Chinese investment in US companies is being scrutinized through the Committee on Foreign Investment in the United States (CIFUS). The US government calls the tech community’s attention to the dangers of ‘adversarial capital’ with regulatory uncertainty in the mix.