Chinese Silicon Valley Investments a Risk for Startups

Various interviews and publicly available information have shown that more than 20 venture capital firms in Silicon Valley have close ties to Beijing and other state-owned funding entities. However, the increasing hard stance of the US government against Chinese acquisitions may make it more difficult for startups to procure funding.

Former CFIUS member and attorney Stephen Heifetz says that the current perception is that a lot of the tech transfer that the US government is worried about is being done in the startup world.

It is said that President Donald Trump does not intend to clamp down on Chinese technology investments via a special emergency order and instead left the job to CFIUS. However, Trump said that he will use his executive powers if Congress fails to pass the bill quickly.

Source: Reuters