US Investors Face Uncertain Future in China After Tech Ban

Private equity and venture capital funds targeted in Biden administration's crackdown. From a report: After President Joe Biden announced a ban on US investment in some of China's critical tech industries, the founder of a Shanghai-based semiconductor start-up felt forced to react. "After the news came out, I was determined to move the team out of China, at least part of the team," the person said, asking not to be named because of the sensitivity of the subject. "Otherwise, the financing will be very limited." The US ban, announced in an executive order on Wednesday and due to come into force next year, aims to block investment in quantum computing, advanced chips and artificial intelligence in an effort to stop China's military from accessing American funding and knowhow. For their part, US investors are trying to work out the potential impact of Biden's order on their holdings in China and weighing up strategies to comply or exit. Private equity groups General Atlantic, Warburg Pincus and Carlyle Group have poured billions into China in recent years as they sought the huge returns from betting on the nation's emergence as a technological superpower. Seeing the writing on the wall, though, many have already pulled back. Buyout groups struck deals in China worth $47bn in 2021, but that fell rapidly to just $2.4bn in 2022 and $2.8bn so far this year, figures from Dealogic show.

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