Top China venture capitalist Lee Kai-fu says he’ll pull out of US if trade war escalates
- Founded in 2009, Sinovation Ventures was one of the first Chinese VC firms with a presence in the US
- The Trump administration has blocked or delayed deals, large and small, between US and Chinese tech companies
Lee Kai-fu, a prominent Chinese venture capitalist and former president of Google China, said his investment firm will withdraw from the US if relations between the two countries deteriorate further.
“Our US strategy is pending on the Argentina meeting, to see if there is a US strategy,” Lee said in an interview with Bloomberg at the CEC Capital Summit, an annual event in California hosted by a Beijing investment bank. “We do not have to invest in the US.”
Founded in 2009, Sinovation Ventures was one of the first Chinese VC firms with a presence in the US. Other global firms, including Sequoia Capital and GGV Capital, have propelled their brands using a similar strategy that promises entrepreneurs a bridge between the world’s two largest economies. Sinovation Ventures manages about US$2 billion between six funds in US and Chinese currencies. It holds shares in more than 300 companies, most of which are in China. The financial impact of a US pull-out for the firm would be muted.
Lee’s uneasiness reflects a common feeling among Chinese-rooted investors doing business in the US. The Trump administration has blocked or delayed deals, large and small, between US and Chinese tech companies. In the first five months of the year, Chinese acquisitions and investments fell to the lowest level in seven years, a drop of 92 per cent, according to Rhodium Group, a global economic and policy research firm.