Sat, Jan 12, 2019 - Page 9 News List

Chinese tech investors flee Silicon Valley amid US crackdown

By Heather Somerville  /  Reuters, SAN FRANCISCO

Last year, not a single Chinese investor took a stake in the companies he shopped to them, he said.

“CFIUS didn’t kill our organization, but it hampered a lot of start-ups, and most of them are American start-ups,” Kuo said.

Some security experts applaud what they call long-overdue protections for US start-ups.

“What we are concerned about is a limited number of bad actors who are phenomenally clever about how they can access our intellectual property,” said Bob Ackerman, founder of AllegisCyber, a venture capital firm based in San Francisco and Maryland that backs cybersecurity start-ups.

Rhodium calculates that, on average, 21 percent of Chinese venture investment in the US from 2000 through 2017 came from state-owned funds, which are controlled at least in part by the Chinese government. Last year, that figure surged to 41 percent.

However, some tech industry players say Washington is casting too wide a net in its zeal to check Beijing.

“A lot of innocent business people are getting” caught up in the administration’s spat with China, said Wei Guo, the China-born founding partner of Silicon Valley firm UpHonest Capital.

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