Chinese investment into US tech companies reached a new low in the first quarter of this year, with the tense relationship between the two countries showing little sign of recovery, according to a report by GP Bullhound, a technology advisory and investment firm, reported the South China Morning Post.
The UK-based company’s Asia Insights report showed that Chinese investors closed 11 deals worth $400 million involving US tech companies in the first quarter, compared to 18 deals worth $1.8 billion in the same period last year.
GP Bullhound’s report quarterly report for the same period last year had noted that Chinese investors were increasingly turning their eyes to Europe for investment and deals as US regulators were seen as a “major hurdle” to technology-driven transactions.
“The preference for European tech firms and decline in [Chinese tech investments in] the US does not mean Chinese investors are losing interest in the US market,” Li Juzhen, an investment manager at Beijing-based GSR United Capital said. “It is more because of the uncertainty considering current US-China relations, but it could be temporary,” Li said.