Others say that China has access to many other sources of funding around the world and that cutting off that access would prevent American companies from benefiting from Chinese innovations.
“Getting the details right on outbound investment selection is easier said than done,” said Rory Murphy, vice president of government affairs for the US-China Business Council. “These are technical and complicated sectors, and the details are critical.”
He added that his group wanted to “help policymakers thread the path toward achieving their national security goals without going too far and putting American business at a competitive disadvantage.”
Investment firms including Blackstone, KKR, Sequoia, Carlyle Group, Bain Capital, Silver Lake, General Atlantic and Warburg Pincus have notable exposure to China. According to tracking by the Rhodium Group, a research firm that focuses on China, US investors have been doing about 3,000 transactions a year in China, including foreign direct investment and venture capital deals, with about 500 of them valued. at over $1 million.
Bill Ford, chief executive of General Atlantic, an investment firm, has expressed his views on potential regulation directly with Commerce Secretary Gina Raimondo, a person familiar with the matter said.
General Atlantic says it has invested nearly $7 billion in China since 2000 with more than 34 portfolio companies in the country. One of his highest-profile investments there, ByteDance, TikTok’s parent company, has found itself in the crosshairs of the debate over how to manage financial ties between the United States and China.
Depending on how it is put into practice, this new tool could fundamentally alter the country’s financial relationship with China, one of the United States’ biggest trading partners but also a main geopolitical rival.
