Fund co-founded by Chinese electric-vehicle maker NIO shrugs aside US-China trade war, to invest in top tech globally

NIO Capital, the technology fund co-founded by Chinese electric-vehicle manufacturer NIO, is shrugging aside the US-China trade war to pursue investments in leading technologies in the new-energy vehicles sector.

Ian Zhu, the company’s managing partner, said in an interview NIO Capital was pursuing investments with a “global perspective and open attitude”, and was eyeing only top technologies with the potential of reshaping the transport and energy sectors globally.

“We are not short-sighted, assessing only the impact from geopolitical issues before making investment decisions,” he said. “Best technologies will eventually stand out as market forces play a decisive role in commercialising them.”

He said NIO Capital will source deals worldwide, including in the United States, regardless of the trade war between the world’s two largest economies.

Co-founded with investment companies Sequoia and Hillhouse Capital two years ago, NIO Capital manages a yuan-denominated fund valued at US$1.5 billion. It is reportedly in the process of closing a dollar fund worth several hundred million US dollars, but Zhu would not elaborate on the fundraising.

The company has invested in about 30 firms, mainly in China, with total investment equally 4 billion yuan (US$581.4 million).