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UAE Firm Sells Chinese Investment Amid US Pressure

Rep. Mike Gallagher, R-Wis., chairman of the House Select Committee on China, said Feb. 10 that he welcomes news that United Arab Emirates-based artificial intelligence firm Group 42 Holdings (G42) has sold its stake in Chinese companies.

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"I’m glad to see G42 reduce its investment exposure to Chinese companies," Gallagher said in a statement. “There is no such thing as a private company in China and any investment in China, particularly in blacklisted entities, only funds and facilitates the Chinese Communist Party’s human rights abuses, military build-up, and techno-totalitarian surveillance state."

G42 did not immediately respond to a request for comment.

In a Jan. 3 letter, Gallagher urged the Commerce Department to consider placing G42 on its Entity List, citing the firm's work with China’s military, intelligence services and state-owned companies and its relationships with blacklisted entities, including privately owned BGI Group and Huawei (see 2401090080). In a Jan. 11 statement, G42 denied allegations "regarding G42's supposed connections to the Chinese government and their military industrial complex," saying that forming a worldwide network of partnerships is "standard practice among global technology companies."