China is now ramping up its US investments. Money from Beijing is flowing to advanced technology startups whose products may have military applications. It has been observed that the Chinese have put in money only on the companies which manufacture rocket engines, artificial intelligence written for military robots and ship censors. Investments are also seen in companies which manufacture special printers. These printers could generate a number of high-technology components like computer screens specifically made for combat aircraft. Investments made towards cutting edge technologies are being made at the expense of other United States industries like entertainment.
A majority of the firms making such investments are either owned or under effective control of the Chinese Government. If a company is not under the Chinese Government, there is a fair chance that it will be owned by a Chinese leader.
Massive Chinese investment
According to CB Insights, specializing in tracking investments made in startups, China has injected $9.9 billion into firms based in Silicon Valley in 2015. An extra $3.5 billion was made as technology investments during the initial nine months of 2016. The size and also the number of those technology investments in the startups which develop military applications were not published.
The Trump administration are aware of such developments, A white paper has been written and circulated among the Trump administration officials. The report says that it is clear that the investments being made are being done with a narrow focus: ramping up Chinese military might, and shoring up its economy.
When it comes to China, such investments in overseas companies are not new. The country spent about $225 billion in 2016 to buy out or investing in overseas companies. Clear evidence exists of the complicity between the Chinese Government and the investing companies. Only strategic industries get blessed with funding, all others go dry.
Chinese interest towards startups has mainly veered towards robotics having military applications and AI due to its recognition that parameters of defense and war are quickly evolving. This premise is supported by the US-China Economic and Security Review Committee, a body responsible for monitoring the national security ripples which could be due to making deals and conducting trades with China. A report authored by this agency said that warfare is being changed on a basic level due to the use of unmanned platforms. The report said that Washington should consider security implications linked with all Chinese acquisitions of US companies whose products can be used in defense.