A comprehensive evaluation into the financial involvement of four prominent venture capital firms in the high-tech sectors of artificial intelligence (AI), semiconductors, and quantum computing in China has been initiated by congressional legislators.
The investigative body is the House Select Committee on the Chinese Communist Party, which has issued formal notices to GGV Capital, GSR Ventures, Qualcomm Ventures, and Walden International. The venture firms have until the first day of August to furnish details of their Chinese affiliations and investments, as stated in an official announcement made late Wednesday.
Committee chairman Mike Gallagher, a Republican, underlined the venture capitalists' substantial funding contributions to AI and semiconductor firms located in the People’s Republic of China (PRC). He articulated the need for thorough scrutiny of investments in strategic sectors prioritized by the PRC due to its known reliance on private sector companies for military and surveillance functions.
The committee's perspective holds that investments in Chinese firms facilitate human rights violations perpetrated by the Communist Party (CCP). Additionally, the advancements realized in the fields of quantum computing and semiconductor manufacturing stand to primarily aid the Chinese military.
According to the issued statement, GGV Capital's investments are directed towards the Chinese AI firm Megvii, known for its substantial role in supporting the CCP's surveillance of the Uyghur minority, thereby catalyzing a new epoch of algorithmic prejudice.
The committee's findings also highlighted GSR Ventures as one of the leading US contributors to Chinese AI companies between 2015 and 2021. Concurrently, Qualcomm Ventures has established financial ties with Zongmu, a manufacturer specializing in autonomous vehicles in China.
Over the same timeline, Walden International directed at least 39 percent of its AI investment portfolio to Chinese enterprises, notably including Intellifusion. This company found itself on the Commerce Department’s watchlist due to its alleged role in facilitating the CCP's surveillance activities in the Uyghur-populated region of Xinjiang.
Expressing grave concern, the committee's ranking Democrat, Raja Krishnamoorthi, voiced the unease of American citizens about US capital and expertise being used to boost CCP's advancement in technology sectors that potentially threaten both national security and fundamental American values.
