US Tech Startups’ China money spooks Pentagon
Projects with military applications are relying on Chinese money
A new white paper commissioned by the US defense department says Beijing isn’t just investing in critical technologies at home, they are doing it in the US as well. The New York Times reports that some tech startups working on projects with military applications have received money from state-run Chinese firms. Lawmakers calling for stricter oversight of Chinese investments note that the scope of the interagency Committee on Foreign Investment in the US (Cfius) does not include smaller investments, such as those into tech startups. Despite the increased scrutiny, many firms say the Chinese investors are their only option.