(NewsNation) — Five American venture capital firms invested at least $3 billion in Chinese companies that “facilitate human rights abuses” and funnel money directly to the Chinese Communist Party and the Chinese military, according to a Congressional investigation released Thursday.
A new report from the House Select Committee on the Chinese Communist Party said those investments helped strengthen some of China’s “largest and most notorious” artificial intelligence and semiconductor companies, many of which are now blacklisted by the U.S. government.
“Both technologies have civilian and military applications. Both will drive the future of warfighting, and both are necessary components of the Chinese Communist Party’s (CCP) Orwellian surveillance state and human rights abuses,” the report says.
The five U.S.-based firms examined in the report are GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital and Walden International.
The U.S. bars the export of sensitive tech to certain Chinese companies but does not block U.S. investors from funding them, the report points out while also calling for congressional action to change that.
“In short, U.S. capital and expertise have flowed directly into the hands of our nation’s foremost strategic competitor,” the report says.
Read the full report below.
This is a developing story that will continue to be updated.
