A new foreign investment bill will impact venture capital and the U.S. startup ecosystem

President Trump's time in office has been punctuated by rising tension with China on a host of economic issues. He's received bipartisan criticism for the impact of tariffs on Chinese goods and the resulting retaliation against American exports. Democrats and Republicans have also unified over concerns about how Chinese state-associated actors are using minority investments in critical technology companies to gain sensitive information -- like IP and know-how -- about startups, many of them VC-backed. Policymakers are worried this technology is being used to propel Chinese advancement in emerging technology like artificial intelligence and robotics. These concerns led to passage of the Foreign Investment Risk Review Modernization Act (FIRRMA), which was signed into law by the president on August 13. NVCA has been at the table during FIRRMA's consideration because it stands to have a significant impact on the venture and startup ecosystem.