Biden administration concerned about U.S. investments in Chinese tech companies with military or surveillance ties
The Washington Post
In 2020, a fast-rising artificial intelligence company in China won a little-noticed contract from a Chinese military academy to provide battlefield command software — technology that defense experts say could become part of the military’s operational network.
A few months later, Goldman Sachs invested in the Beijing-based company, helping it raise $700 million, according to the company, 4Paradigm. So did Sequoia Capital China, a Chinese affiliate of the prominent Silicon Valley venture capital firm, which markets funds that draw investment from U.S. university endowments and charitable trusts.
There was nothing illegal about those investments in 4Paradigm, a seven-year-old start-up whose foray into artificial intelligence has been so successful it has plans to soon go public.
YJ Fischer, Director, US SEC Office of International Affairs addresses recent regulatory developments related to the lack of US inspections of audits and investigations in China and Hong Kong, and the implications for continued trading of China-based issuers on US exchanges.
Many major stock and bond indices developed by index providers like MSCI and FTSE include companies that are listed on the Department of Commerce’s Entity List and/or the Department of Defense’s List of “Communist Chinese military companies” (CCMCs).