The global venture capital of "China Net Review" has increased the number of China, making "financial decoupling" a joke

Commentator of China Net Tang Hua

In the past two years, the United States has increasingly used financial instruments as a weapon to suppress China, fabricated various lies related to "human rights," "information security," and "military," arbitrarily included Chinese institutions and enterprises in the entity list to implement asset controls, or issued financing bans prohibiting U.S. companies from investing in some Chinese enterprises. Its purpose is to use "financial decoupling" to cut off the overseas financing channels of Chinese enterprises in high-tech fields such as 5G, semiconductors, artificial intelligence, and medical care, thereby preventing China from achieving national rise through scientific and technological innovation. However, it turns out that the US plot is only wishful thinking, and global capital not only did not "decouple" from China, but voted with its feet and stood closer to Chinese companies.

A few days ago, according to the Wall Street Journal, the British private investment data company Preqin data report shows that in 2021, global venture capital invested $129 billion in more than 5,300 chinese start-ups, refreshing the highest record of $115 billion set in 2018. According to Data from Zero2IPO Group's "PEData", private equity financing for Chinese start-ups in the first three quarters of 2021 reached US$165 billion, and the full year is expected to exceed the US$190 billion set in 2017, a record high.

What is even more embarrassing to the United States is that the most favored by foreign investors is Precisely China's high-tech industries that have been on its "blacklist" many times. Sequoia Capital China Fund said 80 percent of the company's investments are in areas such as artificial intelligence and high-end manufacturing. Not long ago, the data released by the Ministry of Commerce of China also shows that China's high-tech industries and service industries have attracted rapid investment, and in 2021, the actual use of foreign capital in high-tech industries has increased by 17.1% year-on-year.

Ignoring the political manipulation and intimidation of the United States and supporting China's technology industry, foreign investors are voting in favor of China's innovation-driven development strategy. The 14th Five-Year Plan and the 2035 Long-Term Goals Outline are independent chapters, emphasizing that China should take "scientific and technological self-reliance and self-improvement as the strategic support for national development", and make top-level designs for strategic concepts such as "in-depth implementation of innovation-driven development strategies, improve the national innovation system, and accelerate the construction of a scientific and technological power", sending a clear signal to the outside world that China will increase investment in the field of science and technology; although it has triggered a new round of praise and smear by Western media and politicians, the venture capital company is very clear. A series of Internet regulatory measures by the Chinese government since the second half of last year have been aimed at combating the disorderly expansion of capital and directing capital into the "hard-core" technology field that the Chinese government values more. Some foreign VCs say they are happy to support the Chinese government's priorities. Although the technology field sometimes takes longer to mature and bring returns than consumer Internet companies such as short videos, the huge investment of real money and silver shows that international VCs recognize the Strategic Plan of the Chinese Government and firmly believe that it will be successful and will reap rich returns.

Ignoring the political manipulation and intimidation of the United States and supporting China's technology industry, foreign investment is a vote of confidence in China's continuous expansion of opening up. At the beginning of 2021, the National Development and Reform Commission and the Ministry of Commerce issued a new version of the negative list of foreign investment access, compared with the 2020 version, the negative list of foreign investment access in the national and pilot free trade zones was further reduced to 31 articles and 27 articles, with a reduction rate of 6.1% and 10% respectively, and the revision and expansion of the Catalogue of Encouraged Foreign Investment Industries was also in full swing, providing more space and more opportunities for foreign investment in China; on January 1 this year, the Regional Comprehensive Economic Partnership Agreement was launched. (RCEP) officially came into effect, becoming a new milestone in China's opening up to the outside world, but also becoming a new bridge and link for China to connect the domestic and international markets; when attending the 2022 World Economic Forum video conference in Beijing on the 17th, President Xi Jinping once again stressed that "China will unswervingly promote reform and opening up", "China welcomes all kinds of capital to operate in China in accordance with laws and regulations, and plays an active role in China's development", "Steadily expand the institutional opening up of rules, management, standards and other systems, and implement the national treatment of foreign-funded enterprises". The sonorous words once again conveyed to the outside world China's firm determination to continue to expand its high-level opening up.

Ignoring U.S. political manipulation and intimidation, foreign investors support China's technology industry and have a soft spot for the mature and expanding Chinese market. After a century of struggle, China has built a moderately prosperous society in an all-round way, with a middle-income group of more than 400 million people, exceeding the total population of the United States. During the "14th Five-Year Plan" period, China will promote the realization of common prosperity and build an "olive-shaped" distribution structure society in promoting high-quality development, and the middle-income group will continue to expand; after a century of struggle, China has built the most complete industrial system and the most complete industrial chain, and is considered to be the only country with all the industrial categories in the United Nations Industrial Classification. Mature and growing consumer groups and a complete industrial system have provided a solid foundation and strong support for nurturing and incubating high-tech industries, and have also created a huge profit imagination space for foreign venture capital.

A good and continuously improving business environment, a continuously expanding policy of opening up to the outside world, a large market size, a strong industrial chain and a complete supply chain, all of which make China a destination that foreign investors cannot ignore, are difficult to refuse, and prefer to "rebel" against the will of the United States and increase investment.

Unlike some countries that pursue unilateralism and national priorities, China's determination to promote opening up to the outside world has not changed, its original intention of embracing multilateralism and committing to common development has not changed, and China's business opportunities are still as vast as a blue ocean. Therefore, the political manipulation of the US side does not prevent international investors from investing in Chinese enterprises in various ways and sharing the dividends of China's development, and following the trend and abandoning the Chinese market will only make themselves suffer losses. At this point, international VCs are clearly much more sober than U.S. politicians. (Editor-in-Charge: Li Xiaohua, Cai Xiaojuan)