Amid rising tensions between the U.S. and China, a move to watch out for.
One of the top investment firms in Silicon Valley is separating its business in China and America. The company, Sequoia Capital, said it would run its Chinese business as an independent entity.
Sequoia Capital is known for its early investment in Apple and Google. It has raised billions of dollars from U.S. investors, and funded some Chinese tech companies, such as Alibaba and Bytedance- TikTok’s parent company.
The firm says it has become increasingly complex to run a decentralized global investment business, adding it was a complicated decision, but executives realized, quote: “It’s time for this.”
The move comes as the Biden administration weighs restrictions on investments in sensitive technologies such as semiconductors and artificial intelligence. These are key for countries’ military capabilities. American investors have poured billions into China’s AI industry.
Sequoia also plans to run its Indian business as a separate entity, saying the planned change would take effect next March.