Just a few years, ago, money from China was flowing into Silicon Valley. Now, the welcome mat is gone. According to the Wall Street Journal, startups are shunning Chinese investors, some even going so far as to try to force existing Chinese shareholders to sell out their stakes.
Meanwhile, venture capital firms are either getting rid of Chinese limited partners or finding other ways to limit their exposure to tightening U.S. scrutiny of Chinese investment in U.S. technology.
The change is part of the broader trade war and tougher U.S. government oversight of China’s access to U.S. tech. The Wall Street Journal said that U.S. senators and Trump administration officials have been meeting with Silicon Valley entrepreneurs and investors to warn them of the dangers of Chinese investment. It’s a far cry from the situation just a few years ago, when we profiled China’s presence in Silicon Valley.