U.S. blacklisting threatens to derail $1 billion Chinese tech IPO

HONG KONG/BEIJING – Donald Trump's latest salvo against China threatens to derail a $1 billion coming-out party for a prominent startup backed by Alibaba Group Holding Ltd., while curtailing the country's broader ambitions of leading artificial intelligence in the coming decade. The U.S. placed eight Chinese technology giants on a U.S. blacklist Monday, accusing them of being implicated in human rights violations against Muslim minorities in the country's far-western region of Xinjiang. Among those singled out for sweeping American export restrictions were SenseTime Group Ltd., the world's largest AI startup, and Megvii Technology Ltd. -- two giant enterprises Beijing is counting on to spearhead advances into a revolutionary technology, aided by billions of dollars in foreign backing. The White House's actions -- announced days before sensitive trade negotiations resume in Washington -- cast a pall over not just Megvii's capital-raising effort but the burgeoning Chinese sector. Leading players like SenseTime and Megvii, already having trouble securing financing during an economic downturn, had considered international forays to sustain a sizzling pace of growth.