China VC: Amicable divorces

MoFo partner Rongjing Zhao was quoted in a recent article published by AVCJ, in light of the recent trend that regulatory pressures are encouraging Chinese VC firms to end longstanding U.S. affiliations. 

In some industries, such as semiconductors, the dividing line between U.S. dollar funds and renminbi funds, and where they can invest, has been more distinct. According to Rongjing, “The industry requires a lot of capital, and the return may not be as quick as elsewhere. Many clients say there are more interesting places to invest in China. In addition, ever since the Chips Act was announced, most investments in semiconductors have been through renminbi funds. The companies don’t want to take new US dollar investment.”

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