China’s Venture Funding Tumbles Precipitously After Crackdown
- Investment in chips bucks trend thanks to Beijing-led effort
- China is now among the worst-performing VC markets globally
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Venture capital investments in China are falling sharply this year, making it one of the worst-performing countries globally after the Communist Party’s crackdown and an overall decline in tech valuations.
The value of venture capital deals in the country tumbled 44% to $62.1 billion through October, compared with the same period in 2021, according to research firm Preqin. China once rivaled the US for capital invested in startups, before Xi Jinping’s administration embarked on sweeping efforts to reform the practices of giants like Alibaba Group Holding Ltd. and Tencent Holdings Ltd.