Despite having tense U.S. and China relations today, Goldman Sachs purchased US companies using Chinese state funds in a $2.5 BILLION “partnership fund” that invested in drones, AI, cloud computing, and supply chains.
U.S. and China relations today; Goldman Sachs invested $2.5 billion in U.S. companies using state funds from China (Photo: Financial Times)
U.S. and China Relations Today: Despite having tense relations
Goldman Sachs has been covertly investing in a number of US startups in the AI and computing sectors using money from a $2.5 billion “partnership fund” from China. According to the Financial Times, the Wall Street powerhouse is transferring money from a private equity vehicle it established with the China Investment Corporation.
The China-US Industrial Cooperation Partnership Fund has U.S. and China Relations today partnered with U.S. businesses in the domains of cloud computing, drug testing, global supply chains, and retail technology since its founding in 2017.
This occurs despite tense relations between the US and China relations today caused by disagreements over technology, security, and Taiwan, as well as the signing of an executive order by Joe Biden restricting US investments in Chinese firms.
Despite having tense U.S. and China relations today Goldman Sachs invested $2.5 billion in US companies
Goldman started working behind the scenes with the Chinese cash flow when Lloyd Blankfein, the bank’s then-CEO, introduced the private equity fund in November 2017 during Donald Trump’s official visit to Beijing which affected U.S. and China relations today.
The fund was hailed by the bank as an “anchor investor” who would support business expansion in China. Goldman purchased seven businesses with money from the fund, including LRQA, whose subsidiary, Nettitude, is a cyber security company that works with the British government. It became the center of talk for U.S. and China relations today.
“China represents 40% of the global certification market, and we are currently under-represented there,” a spokesperson for LQRA, which provides inspection and certification services to the British military as well as the energy and healthcare sectors, told FT. “This is something we are seeking to address of U.S. and China relations today in part with assistance from the [Goldman-CIC] fund.”
