The News 🗞️:

We are thrilled to announce the launch of our inaugural newsletter, coinciding with an event of great global significance: Chinese President Xi Jinping's visit to the United States this week. In addition to attending the Asia-Pacific Economic Cooperation (APEC) Summit, President Xi Jinping and US President Joe Biden will take the opportunity to convene bilaterally in San Francisco and delve into the intricacies of current U.S.-China relations. 

Undoubtedly, recent times have seen a strain in the relationship between the two global powerhouses. Both nations have heightened restrictions on high-technology firms originating from the other's territory, and current geopolitical tensions like the war in Ukraine have landed these two countries on opposing fronts. However, these two economies remain inextricably tied, and this upcoming dialogue represents the most senior-level endeavor thus far to turn the page and forge a path towards improved cooperation. 

In the midst of what has been termed a "dark period" for US-China relations, the ability to foster stronger ties is not only diplomatically crucial but holds tremendous potential for the VC sector. Cross-border collaboration has historically been a driving force behind innovation, economic growth, and the development of groundbreaking technologies. 

Their reunion will also be a valuable opportunity to establish governance principles for emerging technologies. During this occasion, the two leaders are anticipated to deliberate on the growing use of artificial intelligence, and explore potential agreements for its global regulation, especially concerning its application in the realm of autonomous weapons.

In the current geopolitical landscape, President Xi’s visit to the United States–his first since meeting President Trump in Mar-A-Lago in 2017–has the potential to reset strained global relations, propelling the world towards increased collaboration and mutual value creation. 

Our Translation 🕵️:

A more cooperative environment between the United States and China could open up new avenues for VCs on both sides of the Pacific. Increased collaboration may pave the way for joint ventures, strategic investments, and the sharing of expertise, creating a more vibrant and interconnected global innovation ecosystem.

In particular, current U.S. restrictions on exporting advanced computer chips and semiconductors to China has hampered innovation and technological advancements in the region. In light of this, it would be in the best interest of entrepreneurs if President Xi actively pursued the relaxation of these blockages. Unfortunately, we're not overly optimistic; the day after their meeting, on November 16, a new set of sanctions is anticipated to come into effect.

Still, President Biden would be wise to contemplate an alternative approach to the U.S.'s relationship with China, especially where it concerns business and economic cooperation. In the best-case scenario, fostering international collaboration and establishing pathways for venture capital innovation could lead to the development of new technologies and the opening of lucrative markets. In global safety terms, increased collaboration, cooperation, and communication often discourage escalation of tensions and, most importantly, violent conflict. 

In the worst-case scenario, there is a world–not too far ahead in the future–where excluded Chinese entrepreneurs may have the capacity to redesign and substitute Western components with their proprietary technology. In such a scenario, U.S. efforts to undermine China could potentially backfire, leaving American VCs, as well as political advisors, scrambling to catch up. 

One example is Huawei's introduction of its Mate 60 model in September where the company showcased a wholly Chinese chip, providing a glimpse into the direction technological replacement is moving under the ongoing sanctions. Let's hope that the dialogue between Presidents Xi and Biden can redirect venture capital and innovation away from nationalistic rivalries, and instead steer them towards future mutually beneficial collaboration.

Launching Venture Without Borders

Just as these attempts to dialogue aim to bridge gaps, our publication seeks to bring awareness to the immense potential for economic growth and innovation through international collaboration, encouraging readers to open our eyes beyond borders.

The articles and insights in our newsletter will explore the potential for shared economic prosperity and groundbreaking innovations that emerge when nations and people work together. We believe that understanding and embracing the opportunities that lie in collaboration is essential for navigating the complex landscape of today's global economy.

As we embark on this exciting journey with our first edition, we invite you to join us in exploring the possibilities that arise when we look beyond borders. In next week’s volume, we will break down Xi’s visit and offer our thoughts on what it means for the future of the US-China relationship, particularly in the context of innovation and venture.

Thank you for being part of this momentous launch. We look forward to keeping you informed and inspired.

-Paula and James