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PitchBook Analyst Note: Examining US Investments in China

Q3 2023

PitchBook Analyst Note: Examining US Investments in China

September 13, 2023

Over the last two decades, US investment has played an active role in propelling the growth of the Chinese venture market. Our analyst note unpacks the history of this market and the impact of escalating US-China tensions on American investors going forward. 

  • USD funds in China have a history of backing some of the most successful tech startups in the country, including ByteDance, Baidu, and Shein. 
  • US LP commitments to USD funds in China have waned in recent years, hitting a six-year low of 31 commitments in 2022.  
  • The pullback of US investors may not lead to as significant a void in China’s VC market as expected, and some Chinese GPs have already been looking elsewhere for capital. 

Table of contents
Key takeaways 1
Introduction 2
History and deal activity 3
Challenges and the current market environment 8
Outlook and expectations 15