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China tech investment flying under the radar: Pentagon

China is investing in Silicon Valley start-ups with military applications

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Velodyne’s car-mounted 3D LiDAR scanner. The company gained from a Pentagon grant. Photo: Reuters

Paul Mozur & Jane Perlez | NYT Hong Kong
China is investing in Silicon Valley start-ups with military applications at such a rapid rate that the United States government needs tougher controls to stem the transfer of some of America’s most promising technologies, a Pentagon report says.

There are few restrictions on investing in American start-ups that focus on artificial intelligence, self-driving vehicles and robotics, the report contends, and China has taken advantage. Beijing, the report says, is encouraging its companies to invest for the purpose of pushing the country ahead in its strategic competition with the United States.

In some instances, Chinese companies have made under-the-radar investments intended to dodge