Chinese state-backed funds invest in US tech despite Washington curbs

Chinese state-backed funds invest in US tech despite Washington curbs

Groups strike deals in sensitive sectors even as new rules enacted over security concerns

Chinese state-backed funds are still scouring the US for investments in critical technologies despite stiffer restrictions on such deals, prompting bipartisan concern in Washington over the national security implications.

Pixelworks, Black Sesame Technologies and LightIC Technologies, three companies in the sensitive US semiconductor sector, have attracted investment in recent months from some of China’s so-called government-guided funds.

The strategic investment funds, which number more than 1,600, are estimated to control more than Rmb4tn ($610bn) in capital, according to Chinese consultancy Zero2IPO.

The US has stepped up scrutiny of Chinese investments over fears that critical technologies and intellectual property could be stolen, with even minority investments deemed a security risk under rules passed in 2018.