Chinese investment in U.S. startups peaks but 'tremendous uncertainty' ahead

  • 📰 Reuters
  • ⏱ Reading Time:
  • 59 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 97%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Chinese investment in U.S. startups peaks but 'tremendous uncertainty' ahead by heathersomervil

SAN FRANCISCO - Chinese investors maneuvered around heightened geopolitical tensions to make record-level investments into U.S. startups in 2018, but increasingly hostile conditions will likely lead to a dropoff in Chinese funding for this year, according to a new report.

The robust investment comes despite policy headwinds from U.S. President Donald Trump’s administration, which has levied tariffs on $250 billion of Chinese goods and penalized telecoms companies Huawei and ZTE, which the United States accuses of spying. The report’s findings show the amplified role China has taken in the U.S. startup industry, even as it confronts a new U.S. law to limit access to bleeding edge technology.

Chinese investors, including big family offices, have walked away from transactions and stopped taking meetings with U.S. startups, Reuters has reported. The opacity of venture capital, a business with few required disclosures and layers of funds to conceal the source of money, makes it difficult to quantify the precise level of Chinese investment.

Investments from Chinese state-owned investors had all but disappeared by February of this year, according to Rhodium. In mid-2018, there were about five such deals each month. These investors, which are controlled by the Chinese government, would likely find it impossible to get approval for an investment in a U.S. company building sensitive technology, attorneys say.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Rapper Pitbull, looking for the next big start-up investment, says biotech is a good betRapper Pitbull, looking for the next big start-up investment, says biotech is a good bet via CNBCMakeIt MakeIt
Source: CNBC - 🏆 12. / 72 Read more »

Oil falls on swelling U.S. stockpiles, Venezuela adds to market uncertaintyOil prices fell on Wednesday after a rise in U.S. crude inventories, while an in... Its Venezuela Confirms our unnecessary need to be involved in Venezuela over Yemen. End support for Saudi's HumanityFirst Venezuela could flood the market, putting more USA producers in red..
Source: Reuters - 🏆 2. / 97 Read more »