China's Regulatory Crackdown On Its Tech Sector Takes New Twist

China is after the head of its leading state-backed chip investment fund, shortly following a similar probe into a former executive linked to the fund, Reuters reports.
China suspected Ding Wenwu, the head of China Integrated Circuit Industry Investment Fund, or the "Big Fund," of severe law violations and was under disciplinary review.
In July, China placed Lu Jun, former head of investment firm Sino IC Capital, which managed the Big Fund, under investigation, citing a "serious violation of discipline and the law."
China launched the Big Fund in 2014 to boost its semiconductor industry.
The Big Fund raised 138.7 billion yuan ($20.54 billion) for its first and 204 billion yuan for its second fund.
The fund financed Semiconductor Manufacturing International Corp, China's leading chip fab, Yangtze Memory Technologies Co Ltd, a flash memory maker, and several smaller companies and funds.
China also probed IT Minister Xiao Yaqing for "violation of discipline and law."
Xiao's ministry regulated the domestic heavy industry, automobile, telecom, and electronics sectors, overseeing companies from Huawei Technologies Co to Xiaomi Corp XIACY.
Simultaneously, Chinese tech companies, including Alibaba Group Holding Limited BABA, were amid steps to amend their position following a sweeping regulatory crackdown on the sector.
Meanwhile, the U.S. Senate approved a $280 billion bill to drive the U.S. semiconductor industry, reducing its dependence on its Asian counterparts like China.
The U.S. also adopted measures and convinced its allies to restrict cutting-edge semiconductor tech inflow to China.

Market News and Data brought to you by Benzinga APIs

The Only Monthly Membership With a Positive ROI!

-

-

-

-

-

-

-

The Only Monthly Membership With a Positive ROI!

-

-

-

-

-

-

-

Comments