Chinese investment in US tech companies hits new low as bilateral relations remain tense, report says
- There were 11 deals for Chinese investments into US tech companies in the first quarter, compared to 18 in the same period last year
- Chinese investment in European tech firms has caught up with that in US tech firms for the first time in at least two years, according to a report
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.
The UK-based company’s Asia Insights report showed that Chinese investors closed 11 deals worth US$400 million involving US tech companies in the first quarter, compared to 18 deals worth US$1.8 billion in the same period last year.
Amid an overall decline in outbound investment from China due to the coronavirus pandemic, Europe was the only region where Chinese tech investors closed more deals in the first three months of this year, with 11 such deals completed compared to seven in the previous quarter, according to the report. This put the deal volume by Chinese tech investors into Europe on par with that into the US for the first time in the report’s two-year history.
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