Over 20 Silicon Valley venture capital firms have “close ties” to the Chinese government, according to a report.
Reuters claimed on Friday that “interviews with venture capital sources and publicly available information” led to the statistic, with Danhua Capital, which “has holdings in some of the most sensitive technology sectors,” including drones, listed as one company which has ties with the Chinese government.
“While the U.S. government is taking an increasingly hard line against Chinese acquisitions of U.S. public companies, investments in startups, even by state-backed entities, have been largely untouched,” Reuters reported. “That may well be poised to change as the U.S. Congress finalizes legislation that dramatically expands the government’s power to block foreign investment in U.S. companies, including venture investments.”
This week, President Trump announced his intention to protect U.S. tech companies from foreign countries who copy their products.
“We want to have our jewels. Those are our great jewels,” President Trump declared. “We have to protect these companies, we can’t let people steal this technology.”
“We have the greatest technology in the world, people copy it and they steal it,” he continued. “We have the great scientists we have the great brains as we have to protect that.”