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Chinese tech entrepreneurs keen to 'de-China' as tensions with US soar

For the ambitious Chinese tech entrepreneur, expanding into the U.S. just keeps getting harder.To get more china tech news, you can visit shine news official website.

Before 2019, there were few major impediments to having a Chinese company that did business in the U.S. from China. But amid escalating U.S.-Sino trade tensions, particularly after Washington slapped sanctions on telecom giant Huawei (HWT.UL), some Chinese firms began setting up headquarters overseas - moves that could help them draw less U.S. government attention.Now, some mainland China tech business owners say they need to go further and gain permanent residency or citizenship abroad to avoid the curbs on and the biases against Chinese companies in the United States.

Shenzhen-based Ryan, who declined to give his family name due to fear of reprisals in China, says his three-year-old software startup has reached the point where it would be natural to expand in the U.S. - the world's biggest economy. His firm already has a million users in East Asia and a strong base in North America.

But he's dismayed by the U.S.-China trade spats and the restrictions on a growing number of Chinese companies that have been imposed, or are being proposed, by U.S. lawmakers.It's very unfair," he said, lamenting that competitors from other countries did not face similar issues when trying to expand into the United States.

"We feel a lot like the filling sandwiched in the middle of a biscuit."

His solution? He's trying to gain permanent residency in another Asian country.

Reuters spoke to seven tech entrepreneurs from mainland China, most of them educated overseas, who would like to expand their businesses in the United States. All are trying to gain permanent residency or citizenship elsewhere, with most exploring a range of options including Hong Kong, Canada, Japan, the United States and Singapore.

Of the seven entrepreneurs, three agreed to be identified by their English first names only while the others requested complete anonymity, all citing concerns about repercussions within China. They also asked that their businesses not be described in detail.While U.S.-China tensions may have been given new impetus under the Trump administration which levied tariffs broadly and imposed sanctions on Huawei, the friction has continued unabated under President Joe Biden as both countries vie for global tech pre-eminence.

Major flashpoints include U.S. export curbs on chips and data security concerns that have seen ByteDance-owned TikTok banned on U.S. government devices and altogether by the state of Montana. For its part, China recently blocked key industries from using Micron Technology (MU.O) products and has sought to rein in foreign consultancies and due diligence firms.

Geopolitical tensions have meant a far less friendly atmosphere for mainland Chinese companies wanting to operate or gain funding in the United States, the entrepreneurs and consultants say.

"The political narrative in Washington DC and in many state capitals is based on the misconception that all Chinese companies are intertwined with and taking direction from the Chinese government and the Chinese Communist Party," says James McGregor, chairman for Greater China at U.S. communications consultancy APCO Worldwide.

The U.S. Commerce Department did not respond to a request for comment on attitudes towards Chinese companies within the United States.

China's foreign ministry said in a statement that some Western countries want to "politicize technology, putting up obstacles to regular technology and trade cooperation, which benefits neither side, and adversely affects global technological advancement and economic growth."