Congressional panel probes US firms' investments in China | Inquirer Business

Congressional panel probes US firms’ investments in China

/ 08:14 AM July 20, 2023

A CPU semiconductor chip

A central processing unit (CPU) semiconductor chip is displayed among flags of China and U.S., in this illustration picture taken Feb 17, 2023. REUTERS/Florence Lo/Illustration/File photo

WASHINGTON  – A U.S. House of Representatives committee has launched an investigation into investments by four U.S. venture capital firms into Chinese artificial intelligence and semiconductor companies.

The House Select Committee on the Chinese Communist Party sent letters on Tuesday to GGV Capital, GSR Ventures, Walden International and Qualcomm Ventures, the investment arm of Qualcomm Inc, asking for information on their investments in China and setting an Aug. 1 deadline for the firms to respond.


In the letters, the committee alleged that investments by U.S. firms directly contribute to China’s human rights abuses, military modernization and its effort to supplant U.S. technological leadership.


The committee said the probe is the first in a series of investigations into the relationship between the investment world and the Chinese Communist Party.

The Biden administration is considering new rules that would restrict the flow of U.S. investments in Chinese companies working on advanced semiconductors, artificial intelligence and quantum computing.

READ: U.S. investors have plowed billions into China’s AI sector, report shows

In its letter to GGV, the panel said the firm had invested in Megvii Technology, a Chinese company “which actively supports the surveillance of Uyghurs,” a Muslim minority group. The U.S. blacklisted Megvii in 2019 over its alleged links to China’s treatment of Uyghurs.

Beijing has denied U.S. allegations of human rights abuses against Uyghurs.

The committee said Walden had invested in Intellifusion, an AI company the U.S. blacklisted in 2020 for allegedly enabling surveillance of Uyghurs.


GSR Ventures, the committee said, has invested in companies linked to the Chinese military, such as Horizon Robotics, which specializes in AI chips.

Qualcomm Ventures invested in SenseTime, a company the U.S. blacklisted in 2019 over its alleged role China’s efforts to profile and track Uyghurs, the committee said.

GGV, Walden, GSR and Qualcomm did not immediately respond to requests for comment on the investigation.

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READ: China invites global investors for rare meeting as economy sputters-sources

TAGS: China, Congress, Investments, probe, U.S.

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