US venture capital firms put $3 billion into Chinese tech companies.
The firms helped China’s government and military.
The House Select Committee on the Chinese Communist Party reported this.
The investments aided human rights abuses and the Uyghur genocide.
The firms investigated were GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital China, and Walden International.
They invested in Chinese artificial intelligence and semiconductor firms.
The total investment was $1.9 billion in AI and $1 billion in semiconductor companies.
The Committee believes there is more undisclosed investment.
The report is 66 pages long.
The Committee calls for restrictions on investments in Chinese entities.
They want to restrict investments in companies connected to the People’s Liberation Army, forced labour camps, or genocide.
They also want to expand restrictions on investments related to military, intelligence, surveillance, and cyber technologies.
One-third of the investments went to ByteDance, the company behind TikTok.
ByteDance is being investigated for spying on Americans.
China hawks believe ByteDance is a national security threat.
Over $130 million went to Chinese AI companies blacklisted by the US government.
These companies developed AI for Chinese weapons, collected genetic data from Americans, and made facial recognition tech used against Uyghurs.
Chinese President Xi Jinping wants China to be a leader in science and technology.
Americans may unknowingly invest in these firms through retirement accounts.
The firms provided expertise, networks, and talent to Chinese companies.
This helped China’s Communist Party achieve its goals.