Sequoia Capital has roped in national security advisor Beacon Global Strategies to assess the impact of impending U.S. government restrictions on tech investment in China, sources told The Information.
The move comes as President Joe Biden is on the verge of signing an executive order to restrict U.S. investment outlay into China across critical sectors such as semiconductor manufacturing and artificial intelligence.
- Legislators advocated for the restrictions, arguing that U.S. capital contributions provide China a competitive advantage in emerging technology sectors.
- Sequoia's Chinese VC arm, Sequoia Capital China, is one of the largest backers of startups in China.
- Sequoia Capital China recently backed several new AI startups in China that are looking to rival OpenAI.
- Beacon is reportedly assessing the implications of impending restrictions on Sequoia's investments.
- Last year, Sequoia Capital China raised $9B from several investors, including U.S. institutional investors and endowments, for four new funds.