US Investors Funding China-Based Companies That Steal American IP

An employee makes a chip at the Jiejie Semiconductor Company in Nantong, in eastern China's Jiangsu province, on March 17, 2021. STR/AFP via Getty Images

WASHINGTON—U.S. investors are funding China-based companies that steal intellectual property from American companies, experts say.

China-based companies that replicate stolen IP in critical technologies like semiconductors are even more likely to be funded by U.S. investors, because they become subsidized by the Chinese Communist Party (CCP), according to Derek Scissors, a senior fellow at the American Enterprise Institute.