GGV Capital published a notice on Twitter last week that it was severing ties with its China-focused team. The letter it published didn’t mention one detail: That the firm was one of a handful of venture capital shops being investigated by the House of Representatives’ newly formed Select Committee on the Chinese Communist Party.
The Committee, formed at the beginning of this year, was set up to protect both U.S. military interests as well as prevent human labor abuses. Chaired by Republican Wisconsin Representative Mike Gallagher, the Committee is just one piece of the U.S. government’s broader crackdown on companies and investment firms that are investing in China-based companies. President Joe Biden signed an executive order this summer that restricted potential new investments into high-tech Chinese companies.
