Five U.S.-based firms have invested $1 billion USD in China’s semiconductor industry since 2001, according to a congressional investigation on February 8th.
The report by the House Select Committee on the Chinese Communist Party said that Qualcomm Ventures, GGV Capital, GSR Ventures, Walden International, and Sequoia Capital invested into more than 150 Chinese companies.
At least $150 million USD went to firms that directly or indirectly supported the PLA’s (People’s Liberation Army) microchip research and weapon development.
President Biden has imposed many restrictions regarding American investment in the Chinese semiconductor industry, such as the CHIPS Act, to stop the PLA from accessing advanced microchips.
Given the rising tensions between the United States and China, investments and other types of funding are problematic from American officials’ viewpoints.
Some of the firms, such as GGV Capital and GSR Ventures, released statements saying that they have ceased business with or are in the process of selling stakes in Chinese businesses.