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Trade war prompts venture capitalist GGV to seek fresh opportunities outside China, US
- GGV, known for its recent bets in Xiaomi Corp and ByteDance, sharpens focus on new deals in India and Southeast Asia
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Li Taoin Shenzhen
Global venture capital firm GGV Capital is targeting new business opportunities in India and countries across Southeast Asia, as the trade dispute between China and the United States continues to rattle investor confidence, according to managing partner Hans Tung.
The global impact of that trade war “has strengthened our confidence and determination” to sharpen GGV’s development strategy outside the world’s two largest economies, home to nearly 80 per cent of the world’s billion-dollar start-ups or unicorns, Tung said in an interview on the sidelines of the RISE conference in Hong Kong on Tuesday.
“China remains the key focus for GGV, but some supply chains are moving outside the country because of the trade war, which opens up opportunities in other economies,” he said.
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The private equity firm, known for its recent bets in Xiaomi Corp and ByteDance, manages 13 funds worth about US$6.2 billion.
Its move to diversify has come amid growing pessimism of a potential deal to end the US-China trade war, a year after the Trump administration imposed the first round of punitive tariffs on US$36 billion of Chinese imports. Beijing retaliated by levying duties on the same amount of US goods, which marked the start of their tit-for-tat tariff battle.
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Their dispute intensified after Washington added Huawei Technologies, the world’s largest telecommunications equipment supplier and second biggest smartphone vendor, and Chinese supercomputer providers to its trade blacklist, officially known as the Entity List. That effectively banned the export of American hi-tech components, including semiconductors and software, to the blacklisted Chinese firms.
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