US Investors Face Uncertain Future in China After Tech Ban (ft.com) 15
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.
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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USA has enjoyed being a world leader for decades, but still it didn't blow up most places around the world.
China won't either. Play nice with them, they will not touch you either.
Also, with a shrinking population they will never grow *much* more powerful than USA (to really dominate), perhaps slightly and that's ideal for our planet, a multi-polar world. Therefore USA doesn't need to fear for their existence, but, of course, will have to accept not being the only superpower as well as tone down arrogance an
By the end of the 21st century (Score:2)
China will be the dominant power on Earth. An inability to compromise today will haunt us when the tables are turned. The way to chip away at these authoritarian powers is through culture, media, and economic exchange. Trade bans are a short term strategy at best, and disastrous as a long term foreign policy.
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We've been doing culture, media and economic exchange (aka trade) with China for over 40 years now.
So far, they have not shown one iota of openness and have become even more authoritarian than ever befo
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That's clearly not true. If you go to China you will find most big cities and becoming quite westernized in some ways. China consumes a lot of Western culture too, like movies and TV shows. Censored for sure, but even there people are pirating the uncensored versions because they are aware of it and hunger for less censorship.
Not just the west, they are importing a lot of Japanese culture too. Anime travels well.
Economically China has liberalised a lot, and recently a court confirmed that Western licenses w
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LOL!!!
It is questionable whether China will exist in 2050. Chinese economy is falling apart, and quickly. China is also losing population. Urbanization has its consequences. They have recently corrected their previous statistics and said that they have over-counted for around 100M people. The 3 Gorges Dam has caused Yangtze to dry up. China has a huge population, second largest in the Earth, very little arable land and almost no energy reserves (oil, gas and coal). When those masses of people start being
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The governance of China is not that different from the governance of a private US company, and not really all that different even from a public company. Both China and US companies have done quite well over the years.
no-op (Score:2)
This ban will be a no-op. There will be sufficient exceptions that favored companies and investors will not be affected. Only the little guys. But, it takes away a talking point for Republicans in the next election.
Self-defeating measures (Score:1)
And more of the flawed Sullivanism that in total buys a couple of years at best versus Chinese tech supremacy.
China doesn't really need US "tech" here, they already have a bunch of companies strong in AI research and they have funding too. Top of the line hardware could be an issue short term, but it's something that can be managed.
The real goal of all this, a common modus operandi seen with SMIC - is to get US capital out of Chinese companies so they can sanction them arbitrarily later.