Despite Sanctions, US Investors Pour Over $40 Billion Into China's AI Sector; President Biden, 80, Issues Stricter Rules

Chinese AI technologies are being embraced by American investors.

The areas of interest for American investors in the Chinese artificial intelligence (AI) industry have been clarified in a new research from Georgetown University’s tech policy department.

According to the report, 167 US corporations invested almost $40.2 billion in the Chinese AI market between 2015 and 2021, making up 37% of all capital investments made in the region during this time period.

US investors account for one-fifth of investment transactions in Chinese AI businesses.

One out of every five transactions with the Chinese AI market involved US companies, according to the number of transactions. According to the research, GGV Capital had the most deals with 43, followed by Qualcomm Ventures with 13 and Intel Capital with 11.

The report’s authors did point out that certain investments were made following President Joe Biden’s tough sanctions against China’s high-tech industry.

Despite being placed on the US government’s “blacklist,” GSR Ventures invests in a project for Chinese speech recognition.

Political analysts referred to the US’s passing of the CHIPS and Science Act in the summer of 2022 as a new US effort to “actively choke substantial portions of the Chinese technological industry.”

Despite being placed on the US government’s “blacklist,” GSR Ventures invested in a Chinese speech recognition enterprise in spite of the sanctions.

Chinese investments will face stricter regulations under the Biden administration.

According to the research, American investors were primarily drawn to technologies for facial recognition, medicine, and robotics. Some of these technologies, the authors pointed out, may be employed directly for military operations.

As the rivalry between Beijing and Washington intensifies, political scientists in the US anticipate that the Biden administration will announce new regulations this year that will further impede foreign investment in the Chinese economy, notably in the high-tech sector.

Despite Sanctions, US Investors Pour Over $40 Billion Into China’s AI Sector; President Biden, 80, Issues Stricter Rules

Chinese AI technologies are being embraced by American investors.

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