IDG Capital, a venture capital firm with offices in both Beijing and the United States, has been removed from a Pentagon list identifying companies with connections to the Chinese military, according to a Bloomberg report citing the US Department of Defense.
Founded in 1993, IDG is one of the longest-standing firms in China and also operates offices in Boston and New York.
When included in the Pentagon’s January update, IDG Capital rejected any association with the Chinese military, asserting that it did not belong on the list.
In a statement, the firm reportedly welcomed the correction, saying: “IDG Capital is an international investment firm with origins in the US and investments in China and other parts of the world. We remain focused on our mission to generate superior returns for our investors and to be a responsible global family of funds.”
The list was created in 2021 under the direction of the US National Defense Authorisation Act to highlight companies with military ties in China. While it does not impose sanctions or penalties, being included can harm a company’s reputation and deter potential partnerships.
Additionally, Advanced Micro-Fabrication Equipment China has also been removed from the list. Both removals are scheduled to be officially published in the Federal Register on 18 December.
