A bi-partisan congressional investigation has found that US venture capital firms invested billions in Chinese technology companies in semiconductor, AI and cybersecurity, sectors that present a threat to US national security.
According to a report released Thursday by the House Select Committee on China, five prominent venture firms - GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital and Walden International - poured investments into hundreds of Chinese companies that directly or indirectly support Beijing's military and surveillance state.
The congressional report also called attention to Sequoia Capital's investment in EverSec, a cybersecurity startup linked to the Chinese military.
The investigators noted that EverSec won a bid in 2019 for a malware related cyber project from the PLA's Strategic Support Force, and a data platform software-related bid for the PLA Air Force in 2020.
The report also pinpointed problems with an investment by Qualcomm Ventures into SinoITS, an AI startup focused on vehicle and pedestrian recognition.
The committee noted that SinoITS has a joint AI laboratory with the Beijing University of Posts and Telecommunications, a university that is on the Commerce Department's Entity List.
The lawmakers want Congress to restrict US investments in Chinese entities sanctioned or red-flagged by the government for ties to the PLA, or forced labor and genocide.
The committee also recommends additional sectoral outbound investment restrictions related to the PRC's critical and emerging technologies, military capabilities, and human rights abuses.
This Cyber News was published on www.securityweek.com. Publication date: Fri, 09 Feb 2024 18:13:04 +0000