Chinese firm aims to circumvent US sanctions: expert

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A planned venture capital fund will likely serve as a platform to boost competition and acquire technology from the United States, an expert said.

A plan by a group of Chinese military and business institutions to invest $471 million in the creation of a venture capital fund aims to secure high-end military technology by circumventing US sanctions, an official said on Friday. defense expert.

The plan shows Beijing’s ambitions to cultivate a national military supply chain at a time when it has stepped up its threats against Taiwan, said Yang I Kwei (楊一逵), a researcher at the Defense and Security Research Institute. Nationales, a think tank affiliated with the Department of National Defence.

Yang’s comments came after Guangzhou Haige Communications Group (廣州海格通信集團), which supplies communications and navigation equipment to the Chinese military, announced on April 7 that it would partner with China Poly Group. (中國保利集團公司) and other entities to set up a venture capital fund, valued at 3 billion yuan ($471 million), for the development of military equipment.

Photo: Reuters

Haige Communications, whose predecessor was a military munitions factory, counts the Chinese army, navy and air force among its customers and was involved in the development of the BeiDou satellite navigation system.

It is a major supplier of war simulation and pilot training systems for the Chinese military, Yang said.

China Poly is one of 102 state-owned enterprises under the supervision of the China Asset Supervision and Administration Commission.

It served as an importer and exporter of military equipment for China, Yang said.

Participants in the planned venture capital fund have close ties to Chinese authorities, he said, adding that China Poly is one of its biggest watchdog institutions.

Poly Technologies (保利科技有限公司), a subsidiary of China Poly, is the largest public supplier of military equipment, missile and drone technologies to the Chinese military, Yang said.

The planned fund is expected to serve as a platform for the Chinese military to strengthen its technology competition with the United States, which could help Beijing circumvent Washington sanctions and even secure US technology, he said. -he declares.

The COVID-19 pandemic, U.S. sanctions on Beijing and Russia’s invasion of Ukraine prompted many venture capitalists to flee Asia, Yang said.

Chinese authorities likely want the planned fund to reinvigorate the domestic venture capital market and boost information and communications development with the aim of commercializing the technology, he said.

The Chinese military’s efforts in developing information and communications technology could strengthen Beijing’s supervision and control of personal information and pose a greater threat to democracies, he added.

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