New Trump administration policies aimed at curbing China’s access to American innovation have all but halted Chinese investment in US technology startups, as both investors and startup founders abandon deals amid scrutiny from Washington.
Chinese venture funding in US startups crested to a record $3 billion last year, according to New York economic research firm Rhodium Group, spurred by a rush of investors and tech companies scrambling to complete deals before a new regulatory regime was approved in August.
Since then, Chinese venture funding in US startups has slowed to a trickle, Reuters interviews with more than 35 industry players show.
US President Donald Trump signed new legislation expanding the government’s ability to block foreign investment in US companies, regardless of the investor’s country of origin. But Trump has been particularly vocal about stopping China from getting its hands on strategic US technologies.