GGV splits off China business following congressional panel probe - Beritaja

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GGV, The 23-year-old U.S. task superior patient pinch a storied way grounds in China, is splitting into 2 branches arsenic escalating geopolitical tensions proceed to push for decoupling betwixt The world’s 2 superpowers.

In an announcement released Thursday morning, GGV, known for its bets connected ByteDance, Xiaomi and Alibaba, said it will go 2 independent units in The U.S. and Asia. The reorganization is scheduled to beryllium done by The extremity of Q1 2024.

It’s a strategy mirroring 1 precocious pursued by Sequoia, which announced in June that it would separate its China and India arms from The U.S. mothership.

The determination came 3 months aft a U.S. legislature committee initiated a probe into 4 American finance costs complete their backing for Chinese tech companies in areas specified arsenic semiconductors, artificial intelligence and quantum computing.

“Over The past decade, The finance scenery has shifted significantly, and The operating situation has go highly complex. Against these caller realities, GGV is besides evolving,” The patient said in its statement.

Its U.S. branch, led by managing partners Glenn Solomon, Hans Tung, Jeff Richards, and Oren Yunger, will put chiefly in North America, Latin America, Israel, Europe and India/U.S. cross-border businesses.

Led by managing partners Jenny and Jixun Foo, its Asia branch will attraction connected China, Southeast Asia and South Asia from its location office in Singapore.

GGV’s RMB costs will proceed to beryllium independently managed nether The Chinese marque Jiyuan Capital and led by Eric Xu.

GGV and Sequoia won’t beryllium The only ones asked to abstracted their Chinese operations. In early August, President Biden signed an executive order to barroom U.S. investments in The 3 aforementioned captious sectors — AI, semiconductors and quantum computing — in an effort to curb China’s subject ambitions. GSR Ventures, Qualcomm Ventures and Walden International were besides targets of The legislature sheet alongside GGV.

Editor: Naga

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