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For years, the venture flows into the smart money borders at the capital, wherever it can be found, chasing innovation. That era is decisively over. According to a report by Bloomberg, an enterprise capital funds supported by Johnson Family of Fidelity Investments, eight Rhodes, are now planning to sell their entire portfolio of Chinese technology holdings. It is not a strategic trim; It is a exhaust, which includes around 40 companies, who are reportedly standing as 80%. The report reported- “Increased stress between Beijing and Washington”- It is a humble way to say that the political risk of keeping Chinese technology has become great to bear the risk, even for long-term investors.
Why is this happening now?
The decision by an experienced investor like eight roads to sell a portfolio underlines a deep change in the risk calculation. Primary driver is geo -politics. In January 2025, the US imposed new sanctions on American investment in China’s advanced technology sectors, including semiconductors and AIs. After this, trade friction and tariff hike were extended under the Trump administration. For venture capital firms, which often invest with 10 years or prolonged horizon, this level of regulator and political uncertainty has become unstable. The risk is no longer about whether a startup will be successful, but whether a successful company will be inaccessible or useless by future government functions.
Is this a different case?
The step of eight roads is a high-profile example, but it is away from a separate case. This represents a wide “great unknown” of American enterprise capital from Chinese tech, a trend that is growing rapidly. The most important indication of this innings came in 2023, when the legendary Silicon Valley firm Sikoia Capital announced that it was Splitting It is globally famous in three independent institutions, its highly successful China Arm is Rebranding as Hongshan.
Titan of Venture Capital, Steps by Seuston, was a watershed moment, accepting that an integrated global technical investment firm was no longer operating in the US and China. Other major firms have followed the suit. Givi capital, another major border-par fund, also announced a similar announcement last year Separation Its US and Asia operations.
The pressure is not coming from within VC firms only. He is facing political and regulatory pressure to reduce their risks for large American pension funds and university settlement technology investments such as their own fund-limited partners (LPS), harassing many China-centric funds of new capital. For many people, Calculus has shifted from seeking high development to reduce the intensive political risk of being caught on the wrong side of the US-China relationship.
But is not China’s AI view boom?
Yes, which makes this trend more complex. Capital is also returning to show surprising power to China’s domestic AI industry. Such as the release of highly skilled model from startup Deepsek In the late 2024 and early 2025, Silicon Valley surprised and also proved to be China’s ability to actual innovation under the US chip export control. It has created a bisected scene: while some investors look at technical skills and are carefully attached, others, like eight roads, look great to ignore overraching political risk. The “bridge” of technological innovation, for something, is decisively overroded by the “push” of geopolitical risk.
Who is buying what are the eight roads selling?
The fire cell creates an opportunity for a separate class of investor. According to Bloomberg report, potential buyers for assets of eight roads include Chinese take-centered private and venture capital funds. This indicates an important transition in the funding landscape for Chinese startups. While he once rely more on the US dollar-communized money from the global VCS, they are now faster towards domestic, yuan-communized capital. This innings can accelerate China’s technical self -sufficiency target, by ensuring that its emerging technical champions are funded and controlled from within, the division between the US and Chinese technical ecological systems can be deepened.
What does this mean for the future of technology investment?
Chinese technology marks the end of the era of unexpected globalization in the great reluctant technical field of American enterprise capital. Capital, once considered border in search of innovation, is now being rebuilt with geopolitical fault lines. For American investors, this means that the next generation of high-development Chinese technology companies is potentially missing. For Chinese Startups, this means that more challenging funding environment and more dependence on state-educated or domestic capital. Ultimately, it is important as a supply chain dicling in financial decout semi -circulars, which leads to two rapidly separate and competitive technical fields.
Reference Shelf:
VC Fund of billionaire Johnson family to get out of China Tech Holdings (Bloomberg,
Controversial US-China Trade Relations (Foreign Relations Council,
The US still rules China in the tech race, but the intervals are quickly shutting down: Harvard Report (SCMP,
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
