Five American venture capital companies have faced accusations of investing over $3 billion in Chinese artificial intelligence (AI) development. Representative Carlos Gimenez (R-FL) appeared on Fox Business's Varney & Co. to discuss, saying he would ban American firms from investing in China because "every dollar that we spend in China is going to be used against American interests."
Semafor recently reported the five companies, composed of GGV Capital, GSR Ventures, Qualcomm Ventures, Sequoia Capital China, and Walden International, invested in blacklisted Chinese AI development and semiconductor firms, further enhancing calls from the House Select Committee on China to strengthen restrictions.
"I think eventually we need to ban them," Rep. Gimenez told host Stuart Varney, "if not sooner rather than later. Look, every that we spend in China is going to be used against American interests."
Additionally, Rep. Gimenez called the news "alarming" as "the race to AI is very critical to our future, and American companies, and venture capitals, actually helping Chinese companies get their first is not good for America."
Varney asked if an advantage could come from the firms' investments, such as monitoring the Chinese development of AI.
Gimenez replied that regardless of America's watching, "you are going to find out that they are going to be ahead of us, and I do not want to get there. I think the less money is invested in China, the better. The less money that we as consumers send to China, the better."
After all, he pointed out that China has openly vowed to supplant the United States as the world's dominant power, and thus "I do not think American dollars should be helping them in that endeavor."
As a result, Varney asked the Florida Congressman what he would personally do to prevent the rise of China.
Gimenez answered that he would "decouple," a term he previously used this past March.
In January, Senator Rick Scott (R-FL) introduced a bill that would reveal how much the United States has invested in China via the government, which invested nearly $50 million from 2017 to 2021 and another $10 million in 2023.
"When it comes to countries that are our enemies, like Communist China, there needs to be complete transparency and oversight with ANY resources going their way," Sen. Scott stated on X (formerly Twitter).
