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I don't think the question is whether chinese are interested in investing in US technology companies but rather whether they are allowed to. Several countries w

I don't think the question is whether chinese are interested in investing in US technology companies but rather whether they are allowed to. Several countries within the EU are also working on rules which will make it much harder for Chines investors to acquire access to technology IP or important infrastructure companies. Other than that I agree the article is poorly researched.

JumpCrisscross 8y ago
> Several countries within the EU are also working on rules which will make it much harder for Chines investors to acquire access to technology IP or important infrastructure companies Many private companies resist disclosing even financials to their investors [1]. Venture investing is characterised by non-controlling interests. The restrictions you describe limit controlling investments. Those investments count as technology investments. But not as “venture funding in...startups.” [1] https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKCN1G62NK https://www.google.com/amp/s/mobile.reuters.com/article/amp/...
- ThomPete 8y ago
  The Chinese have never needed controlling access to benefit from access to the IP. That's the primary point of the disagreement with the Chinese over IP, enforcement more than legislation.
- ig1 8y ago
  The new Foreign Investment Risk Review Modernization Act has bought minority investments into the scope of CFIUS reviews.
  - JumpCrisscross 8y ago
    > Foreign Investment Risk Review Modernization Act has bought minority investments into the scope of CFIUS reviews Not all minority investments. Simply ones “in a critical technology company that gives the foreign entity: - access to any material non-public technical information of the company; - membership or observer rights on the company’s board or equivalent governing body; or - any involvement in substantive decision-making of the company, other than through voting of shares” [1]. [1] https://techcrunch.com/2018/08/17/a-new-foreign-investment-bill-will-impact-venture-capital-and-the-u-s-startup-ecosystem/ https://techcrunch.com/2018/08/17/a-new-foreign-investment-b...
    - ThomPete 8y ago
      "- access to any material non-public technical information of the company;" wouldn't that cover more or less any relevant investment in a startup?
      - JumpCrisscross 8y ago
        No. Many private companies routinely disclose much less to investors [1]. Technical information rights go beyond standard and statutory investor information rights, and are typically reserved for strategic investors, knowledgeable lead investors and board members. [1] https://www.reuters.com/article/us-palantir-technologies-lawsuit-idUSKCN1G62NK https://www.reuters.com/article/us-palantir-technologies-law...
        ThomPete 8y ago
        I am not so sure that's correct in reality. Maybe technically but not in reality especially not for small startups.
StreamBright 8y ago
Excellent, so they will acquire it by other means.
antt 8y ago
I know of at least one startup that will be closed in the next few months despite the Chinese investor trying to put 30 million in it every which way. They are up to suitcases filled with cash right now. Everything is fine on the US side, it's the Chinese capital controls that's killing them.

JumpCrisscross 8y ago

> Several countries within the EU are also working on rules which will make it much harder for Chines investors to acquire access to technology IP or important infrastructure companies Many private companies resist disclosing even financials to their investors [1]. Venture investing is characterised by non-controlling interests. The restrictions you describe limit controlling investments. Those investments count as technology investments. But not as “venture funding in...startups.” [1] https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKCN1G62NK https://www.google.com/amp/s/mobile.reuters.com/article/amp/...

ThomPete 8y ago
The Chinese have never needed controlling access to benefit from access to the IP. That's the primary point of the disagreement with the Chinese over IP, enforcement more than legislation.
ig1 8y ago
The new Foreign Investment Risk Review Modernization Act has bought minority investments into the scope of CFIUS reviews.
- JumpCrisscross 8y ago
  > Foreign Investment Risk Review Modernization Act has bought minority investments into the scope of CFIUS reviews Not all minority investments. Simply ones “in a critical technology company that gives the foreign entity: - access to any material non-public technical information of the company; - membership or observer rights on the company’s board or equivalent governing body; or - any involvement in substantive decision-making of the company, other than through voting of shares” [1]. [1] https://techcrunch.com/2018/08/17/a-new-foreign-investment-bill-will-impact-venture-capital-and-the-u-s-startup-ecosystem/ https://techcrunch.com/2018/08/17/a-new-foreign-investment-b...
  - ThomPete 8y ago
    "- access to any material non-public technical information of the company;" wouldn't that cover more or less any relevant investment in a startup?
    - JumpCrisscross 8y ago
      No. Many private companies routinely disclose much less to investors [1]. Technical information rights go beyond standard and statutory investor information rights, and are typically reserved for strategic investors, knowledgeable lead investors and board members. [1] https://www.reuters.com/article/us-palantir-technologies-lawsuit-idUSKCN1G62NK https://www.reuters.com/article/us-palantir-technologies-law...
      - ThomPete 8y ago
        I am not so sure that's correct in reality. Maybe technically but not in reality especially not for small startups.

StreamBright 8y ago

Excellent, so they will acquire it by other means.

antt 8y ago

I know of at least one startup that will be closed in the next few months despite the Chinese investor trying to put 30 million in it every which way. They are up to suitcases filled with cash right now. Everything is fine on the US side, it's the Chinese capital controls that's killing them.