(Bloomberg) -- IDG Capital, a venture firm with offices in Beijing and the US, has been removed from a Pentagon list of companies with ties to the Chinese military, according to the US Department of Defense.
“We welcome this important correction and clarification,” the firm said in a statement. “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, which was updated to include IDG in January, aims to highlight companies that work with the military in China, but does not carry sanctions or direct penalties. Inclusion on the list can cause reputational damage and make other companies reluctant to work with the listed firms.
At the time, IDG denied working with the Chinese military and said it did not belong on the list. IDG is one of the oldest venture firms in the Chinese market and has been in the country since 1993. It also maintains Boston and New York offices.
In 2021, the National Defense Authorization Act mandated that the US maintain a list of entities with ties to the Chinese military.
Advanced Micro-Fabrication Equipment Inc. China has also been removed from the list. Official notice of both removals is scheduled for publication Dec. 18 in the Federal Register.
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