COMMITTEE REPORT: American VC Firms Investing Billions into PRC Companies Fueling the CCP's Military, Surveillance State, and Uyghur Genocide
WASHINGTON, D.C. — Chairman Mike Gallagher (R-WI) and Ranking Member Raja Krishnamoorthi (D-IL) of the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party (CCP) unveiled the findings of their bipartisan investigation into five U.S. venture capital firms. The lawmakers found that these firms invested at least $3 billion in, and provided expertise and other benefits to, People's Republic of China (PRC) critical technology companies, including many aiding the Chinese military, surveillance state, or the CCP's genocide in Xinjiang.
The five firms used as case studies in the investigation are GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital China, and Walden International. Chairman Gallagher and Ranking Member Krishnamoorthi uncovered that these firms funneled over $1.9 billion to AI companies that support China’s human rights abuses or military, and at least another $1.2 billion into the PRC’s semiconductor sector– including semiconductor companies that advance the CCP’s military, genocidal, and techno-totalitarian ambitions. The report also highlights other investments that may raise significant security or human rights concerns.
In the report, the lawmakers write, “The Committee’s findings suggest that there are billions of dollars beyond those captured in this report that have flowed into PRC companies that support the PRC’s military, digital authoritarianism, and efforts to develop technological supremacy and undermine American technological leadership. The status quo is untenable. . . . Decades of investment—including funding, knowledge transfer, and other intangible benefits—from U.S. VCs have helped build and strengthen the PRC’s priority sectors.”
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