Dem Rep. Krishnamoorthi: U.S. Investment Funded Nearly 40% of China’s AI Sector and That Gets Shared with Military

On Friday’s broadcast of Bloomberg’s “Balance of Power,” Select Committee on the CCP Ranking Member Rep. Raja Krishnamoorthi (D-IL) said that there needs to be greater regulation on American outbound investment in China and noted that American venture capital investment has funded 40% of China’s artificial intelligence sector and that many of the investments go to companies that end up sharing technology with China’s military or with its internal police.

Krishnamoorthi stated, [relevant remarks begin around 12:20] “It turns out that American VCs have funded upwards of 40% of the VC investments that have gone into the AI sector in the People’s Republic of China. And a lot of those investments, unfortunately, go to companies that then turn around and share that technology that they developed with the military or they share it with their internal police who use it for facial recognition software and the like. So, we are very concerned about these types of investments.”

Krishnamoorthi also said that he wants the Biden administration to issue the rules on outbound investment that it is working on and then see how Congress should act once they see the rules and that the committee wants information from American companies on their investments in China.

Follow Ian Hanchett on Twitter @IanHanchett

COMMENTS

Please let us know if you're having issues with commenting.