VCs Face Fresh Scrutiny Over China Investments as Geopolitical Pressures Build

Now, slowing China’s long-running, multi-billion-dollar effort to catch up with the US in chip technology has become a lynchpin of America’s China policy. AI, where the US also has a big lead, has prompted similar concerns: open-source projects like Meta’s Llama already are quietly helping to power Chinese companies working on artificial intelligence.

“If US investment is making China better at chips and AI — chips and AI are going to be really important if there’s ever a military conflict between the US and China,” said Emily Kilcrease, energy, economics, and security director at the Center for a New American Security, a Washington think-tank. “That’s a problem from a national security perspective.”

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