Due to increased tension between Washington and Beijing

 

Due to increased tension between Washington and Beijing, venture capital firm Sequoia Capital is splitting its China business into a separate entity.  It announced Tuesday that it would run its Chinese business venture completely separately from its U.S. ventures. Sequoia Capital announced that the Chinese arm would go under a new name, HongShan, which means redwood. It will also separate its Indian and Southeast Asian ventures into a third entity, adding that all these changes will take place in the next nine months. Neil Shen, founder of Sequoia Capital, said conversations about splitting the entities "have been evolving over the last two to three years" and noted that the entities have "much less in common now." The China and India arms will run separately but share in some profits with the U.S. arm. The Silicon Valley-based firm was an early investor in both TikTok and Alibaba.