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For the first four months of the year, the total volume of transactions in China involving venture capital funds plummeted by 44% to $24.7 billion. For the first four months of this year, venture capital funds focused on China attracted only $2.1 billion, compared to $27.2 billion for the entire previous year.
Experts believe that this trend is the result of two main factors: tight coronavirus limitations enforced by Chinese authorities in a number of large cities in response to the recent COVID-19 outbreak, as well as Chinese government pressure on the country's leading technological businesses. In this context, observers point to an increase in venture capital investments in neighboring countries: funds focused on Southeast Asia and India collected $3.1 billion in the first four months of this year, nearly as much as they did all of last year ($3.5 billion).
Chinese lockdowns, according to unofficial sources, have already prompted anger among key Western technology companies. According to The Wall Street Journal, Apple has notified several of its contractors that it wants to increase component manufacture outside of China, citing anonymous knowledgeable people. According to the journal's sources, India and Vietnam are among the most likely candidates to expand Apple's manufacturing capacity.
source: bloomberg.com
Experts believe that this trend is the result of two main factors: tight coronavirus limitations enforced by Chinese authorities in a number of large cities in response to the recent COVID-19 outbreak, as well as Chinese government pressure on the country's leading technological businesses. In this context, observers point to an increase in venture capital investments in neighboring countries: funds focused on Southeast Asia and India collected $3.1 billion in the first four months of this year, nearly as much as they did all of last year ($3.5 billion).
Chinese lockdowns, according to unofficial sources, have already prompted anger among key Western technology companies. According to The Wall Street Journal, Apple has notified several of its contractors that it wants to increase component manufacture outside of China, citing anonymous knowledgeable people. According to the journal's sources, India and Vietnam are among the most likely candidates to expand Apple's manufacturing capacity.
source: bloomberg.com
