Marketplace®

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Jan 9, 2019

Exodus of Chinese investment from Silicon Valley is real. But how much does it matter?

Part of the Trump administration’s hard line against China is focused on intellectual property concerns. One fear is that widespread investment of Chinese money in startups gives the Chinese too much access to cutting-edge American tech innovations. That’s why legislation was passed to limit foreign investment. The Committee on Foreign Investment in the United States, or CFIUS, is now able to probe foreign investments in startups. And that is making investors, especially Chinese, balk. Deals are being abandoned. Silicon Valley watchers say Chinese money has pretty much stopped coming into the Valley. Marketplace’s Jed Kim talks about it with Heather Somerville, a tech reporter for Reuters, based in San Francisco. (01/08/19)

People are reflected in the window of the Nasdaq MarketSite in Times Square in New York City.
People are reflected in the window of the Nasdaq MarketSite in Times Square in New York City.
Spencer Platt/Getty Images

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Segments From This Episode

Part of the Trump administration’s hard line against China is focused on intellectual property concerns. One fear is that widespread investment of Chinese money in startups gives the Chinese too much access to cutting-edge American tech innovations. That’s why legislation was passed to limit foreign investment. The Committee on Foreign Investment in the United States, or CFIUS, is now able to probe foreign investments in startups. And that is making investors, especially Chinese, balk. Deals are being abandoned. Silicon Valley watchers say Chinese money has pretty much stopped coming into the Valley. Marketplace’s Jed Kim talks about it with Heather Somerville, a tech reporter for Reuters, based in San Francisco. (01/08/19)

The Team

Exodus of Chinese investment from Silicon Valley is real. But how much does it matter?