GGV splits off China business following congressional panel probe

GGV, nan 23-year-old U.S. task superior patient pinch a storied way grounds successful China, is splitting into 2 branches arsenic escalating geopolitical tensions proceed to push for decoupling betwixt nan 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 successful nan U.S. and Asia. The reorganization is scheduled to beryllium done by nan extremity of Q1 2024.

It’s a strategy mirroring 1 precocious pursued by Sequoia, which announced successful June that it would separate its China and India arms from nan 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 successful areas specified arsenic semiconductors, artificial intelligence and quantum computing.

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

Its U.S. branch, led by managing partners Glenn Solomon, Hans Tung, Jeff Richards and Oren Yunger, will put chiefly successful 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 successful Singapore.

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

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

Update: The past paragraph was updated to explain that nan finance costs weren’t asked to divided disconnected their Chinese units.