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March 28, 2024

Others say cutting off China’s vast access to other sources of funding around the world would prevent U.S. companies from benefiting from Chinese innovation.

“Knowing exactly the details of outbound investment reviews is easier said than done,” said Rory Murphy, vice president of government affairs at the US-China Business Council. “These are technical, complex areas where the details matter.”

He added that his team wanted to “help policymakers achieve their national security goals without being so broad that it puts American companies at a competitive disadvantage.”

Investment firms such as Blackstone, KKR, Sequoia, The Carlyle, Bain Capital, Silver Lake, General Atlantic and Warburg Pincus all have significant exposure to China. According to tracking by China-focused research firm Rhodium Consulting, U.S. investors conduct about 3,000 deals in China each year, including foreign direct investment and venture capital deals, with about 500 of those deals valued at more than $1 million.

Bill Ford, chief executive of investment firm General Atlantic, has spoken directly with Commerce Secretary Gina Raimondo about possible regulation, a person familiar with the matter said.

General Atlantic said it has invested nearly $7 billion in China since 2000 and has more than 34 portfolio companies in the country. TikTok’s parent company ByteDance, one of its most high-profile investments there, finds itself at the center of a debate over how to manage U.S.-China financial relations.

Depending on how it is implemented, the new tool could fundamentally change the country’s financial relationship with China, one of the United States’ largest trading partners and a major geopolitical rival.



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