WASHINGTON: US Congressmen have started a probe into investments by four venture capital firms into Chinese companies specializing in artificial intelligence (AI), quantum computing, and microchips.
The House Select Committee on the Chinese Communist Party has written to GSR Ventures, Qualcomm Ventures, GGV Capital, and Walden International asking for details of their Chinese investments by 1 August, the committee said in a statement late Wednesday.
Mike Gallagher, the panel’s Republican chairman, said that these venture capitalists have invested millions into China-based artificial intelligence and semiconductor companies. AFP reported.
He said that a careful analysis was required of the investments in sectors that are a strategic priority for the China, because it leverages private firms for military and surveillance purposes.
The committee argues that investment in Chinese companies is a driver of human rights abuses by the Communist Party, and that advancements in semiconductor manufacturing and quantum computing directly benefit the Chinese military.
It said that the GGV Capital had invested in the AI company Megvii of China, which “actively supports” Chinese surveillance efforts over the Uyghur ethnic minority.
GSR Ventures tops American investors in Chinese AI companies
The panel added that GSR Ventures was among the top American investors in Chinese AI companies from 2015 to 2021, while Qualcomm Ventures invested in the Chinese self-driving cars manufacturer Zongmu.
In the period, at least 39% of Walden’s AI investments went to Chinese businesses, including Intellifusion, which the Department of Commerce placed on its list of entities allowing Chinese surveillance in the Uyghur, Xinjiang.
Raja Krishnamoorthi, the panel’s top Democrat, said that the people of the United States do not want US money and expertise letting CCP advancements in the technologies that could undermine the national security or American values.
