House select committee says American firms’ investments contributed to China’s military buildup and rights abuses
A clutch of American venture-capital firms are being investigated by a congressional committee over their funding of Chinese tech companies—part of a push in Washington to scrutinize and potentially ban such deals.
The House’s select committee on the China threat this week notified GGV Capital, GSR Ventures, Walden International and Qualcomm Ventures—the investment arm of chip company Qualcomm—that the panel is examining many of their investments in Chinese companies involved in semiconductors, artificial intelligence and quantum computing.
Those Chinese companies, the committee said, threaten U.S. national security and have been involved in human-rights violations. By extension, the American firms’ investments “directly contribute” to those human-rights abuses, China’s military modernization and its effort to supplant U.S. technological leadership, according to letters sent to the venture firms and reviewed by The Wall Street Journal.
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