Silicon Valley’s love affair with China is headed for a rapid divorce. Venture investors won huge success backing some of the country’s most successful tech companies, like TikTok owner ByteDance. But sinking tensions between Washington and Beijing are now forcing investors to pick sides.
In August, the Biden administration barred U.S. investors from investing in Chinese companies working in semiconductors, quantum computing, and AI. And major Silicon Valley funds like Sequoia Capital and GGV Capital are now ditching their China business to protect themselves from political risk.
