Top US company invested $3 billion in Chinese military technology, revealed by House panel investigation

politics

by josh christenson

A report Thursday by a bipartisan House committee said that U.S. venture capital firms have supported Chinese high-tech companies that have supported the Communist government and its military, as well as the ongoing genocide against Muslim Uyghurs in Xinjiang. It is said to have cost the company at least $3 billion.

The House Select Committee on the Chinese Communist Party (CCP), led by Chairman Mike Gallagher (R-Wis.) and Ranking Member Raja・Mr. Krishnamoorthi (D-Ill.) said.

Investments by GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital China, and Walden International totaled more than $1.9 billion in Chinese artificial intelligence companies and more than $1 billion in more than 150 semiconductor companies.

But lawmakers said the findings “just scratch the surface of the national security risks posed by U.S. investments in Chinese industry.”

“The committee’s findings go beyond the amounts identified in this report and show that Chinese companies that support the Chinese military, digital authoritarianism, and efforts to develop technological superiority and undermine U.S. technological leadership “This suggests that there are billions of dollars flowing in,” Gallagher and Krishnamoorthy wrote. 66 page report.

“It is impossible to maintain the status quo,” they added. “Decades of investments from U.S. venture capital, including funding, knowledge transfer, and other intangible benefits, have helped build and strengthen China’s priority sectors.”

Both lawmakers want the United States to restrict investment in Chinese companies that have already been sanctioned or prosecuted by the federal government for ties to the People’s Liberation Army, forced labor camps, and genocide.

They also call for other restrictions under President Biden’s Aug. 9, 2023 executive order banning some U.S. investments that support China’s military, intelligence, surveillance, and cyber technology development. .

A third of the venture’s investment will go to ByteDance, the parent company of social media platform TikTok, which is under investigation by the Justice Department for allegedly spying on American citizens.

China hawks have long warned that the company poses a national security threat.

The report also notes that more than $130 million from U.S. ventures went to Chinese AI companies on the federal government’s blacklist.

These companies have developed AI programs for China’s autonomous weapons systems, collected genetic data from U.S. citizens, and developed facial recognition technology used in Xinjiang.

On October 16, 2022, Chinese President Xi Jinping said in a speech that he would build a “Great Wall of Steel” that would enable his country to become a world leader in the field of science and technology, and “fight the battle for key and core technologies.” We will resolutely win.” Innovation.

In a summary of their findings, Gallagher and Krishnamoorthi wrote that Americans “have their retirement funds invested in these five venture capital firms,” ​​and that “a portion of their hard-earned paychecks is invested in the Chinese Communist Party’s authoritarian government.” He said he was unaware that he was “donating money to further his ambitions.”

“These five venture capital firms aligned their checkbooks to provide Chinese AI and semiconductor companies with expertise, global networks, reputational benefits, and access to global talent,” they said. added.

“Would the Chinese Communist Party have been able to build a world-class semiconductor and AI sector in China without these significant U.S. investments?”

The newspaper contacted all five companies for comment.