WASHINGTON - Sequoia Capital China, Qualcomm Ventures and three other US venture capital (VC) firms ploughed at least US$3 billion (S$4.04 billion) into Chinese tech companies that support Beijing’s military and its repression of minorities in Xinjiang, a US congressional report alleged on Feb 8.

The House of Representatives’ select committee on China, led by Republican Congressman Mike Gallagher, released the report, which also scrutinises investments made by GGV Capital, GSR Ventures and Walden International in Chinese artificial intelligence and semiconductor firms with unsavoury ties.

Reuters could not reach the VC firms for comment.

The Committee called on the Biden administration to restrict US investment in Chinese firms sanctioned by the United States government over ties to China’s military or the repression of minorities.

It also urged the administration to bolster recent US curbs on US investment in China to include more sectors.

“The status quo is untenable… decades of investment – including funding, knowledge transfer, and other intangible benefits – from US VCs have helped build and strengthen the PRC’s (People’s Republic of China) priority sectors,” the report said.

The White House did not respond to requests for comment.

The Chinese Embassy in Washington said the use of national security and human rights as a pretext to restrict US investments in China “will undermine the principle of free trade… destabilise the global… supply chains and serve the interests of no one”. REUTERS