Here is a snippet of the article, which I am posting under the Fair Use Act (I think you should all consider a subscription):
"Silicon Valley startup Pilot AI Labs Inc. signed a Chinese-backed venture-capital firm as its first big investor. By last summer, Pilot AI wanted it gone.
The U.S. startup hoped to sell more of its artificial-intelligence software to the U.S. government after working with the Pentagon, according to people familiar with its operations, and worried its effort could be hurt by the investor’s ties to China’s government. The chairman of the Chinese-backed investor, Digital Horizon Capital, was asked to sell back its stake, said one of the people. He angrily refused.
Chinese investors were once embraced in Silicon Valley both for their pocketbooks and their access to one of the world’s largest and trickiest markets. Today, they are suddenly less welcome.
Since late last year, amid rising U.S-China tensions, venture firms with China ties have been dialing back their U.S. investments, structuring deals in novel ways to avoid regulators or shutting their U.S. offices. Some American venture firms are dumping their Chinese limited partners or walling them off with special structures. And some U.S. startups that have taken significant Chinese money are keeping the investments quiet or trying to push their Chinese investors out to avoid scrutiny..."
That's a horrible example. Of course that's not going to wash. Of course an investor would not be willing to sell back their stake before seeing the return they were looking for. If they wanted to sell AI software to the US GOVERNMENT, they should have found US investors. If they couldn't, then investors from US allied nations. They should have seen this coming a mile away, no?
July 2016? Are you sure? If I was a US company, I'd certainly be cautious of overseas investment from China. Everyone knows they don't respect IP or Copyright laws, steal technology, and more. You would want to very carefully weigh the risks before doing business with a non-democratic nation, even outside of this administration's policies. Anyone planning on doing business with the US Government would be very aware that China is not an ally.
The short version: that's when Xi Jinping took power and started very quickly undoing all kinds of moves toward moderation and reform that had been undertaken by the previous few leaders.
He ramped up control over the population, consolidated power for himself and cracked down on dissidents/party criticism.
The 2014 bit is more subjective, but going from memory that's when I started to regularly see semi-mainstream technology, business and politics publications focusing on problems/concerns with China.
Seems like many of those who provide services to the government are familiar with the Berry Amendment and the implications of the “qualifying countries” list.
Agree, you take someone's money you have to give up something in return. It's a quid pro quo. To think that only means a hollow stake in the company without strength to influence the company's direction, culture, ethos, or mission is naive. Let the free market speak - if you want to eliminate Chinese or anyone else's investment, buy back their stake at whatever price they demand.
"Silicon Valley startup Pilot AI Labs Inc. signed a Chinese-backed venture-capital firm as its first big investor. By last summer, Pilot AI wanted it gone.
The U.S. startup hoped to sell more of its artificial-intelligence software to the U.S. government after working with the Pentagon, according to people familiar with its operations, and worried its effort could be hurt by the investor’s ties to China’s government. The chairman of the Chinese-backed investor, Digital Horizon Capital, was asked to sell back its stake, said one of the people. He angrily refused.
Chinese investors were once embraced in Silicon Valley both for their pocketbooks and their access to one of the world’s largest and trickiest markets. Today, they are suddenly less welcome.
Since late last year, amid rising U.S-China tensions, venture firms with China ties have been dialing back their U.S. investments, structuring deals in novel ways to avoid regulators or shutting their U.S. offices. Some American venture firms are dumping their Chinese limited partners or walling them off with special structures. And some U.S. startups that have taken significant Chinese money are keeping the investments quiet or trying to push their Chinese investors out to avoid scrutiny..."