US Investors Pile Into China AI Markets Despite Geopolitical Risks

Benzinga

U.S. investors are boosting exposure to Chinese AI giants even as Congress weighs tighter capital controls. Alibaba, Tencent, and Baidu are surging on massive AI-infrastructure spending and growing LLM adoption, drawing strong ETF inflows from U.S. buyers.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:03U.S. investors are increasing their exposure to Chinese AI companies,

00:07even as Congress considers tightening restrictions on American capital flowing into China,

00:12according to the Wall Street Journal. Alibaba's shares have climbed more than 80% this year as

00:18the company commits $53 billion over three years to expand AI infrastructure and pursue artificial

00:25general intelligence. U.S. fund managers have increased their holdings in Alibaba's Hong

00:30Kong shares as Tencent and Baidu stocks rise nearly 50% on growing adoption of large language models.

00:36BlackRock said China Tech ETFs were attracting faster inflows than their U.S. counterparts,

00:41with U.S. investors accounting for 15% of July's new money.

00:45Venture activity remains limited due to geopolitical risk.

00:49China-based firms are raising new U.S. dollar funds as Congress moves to give Trump expanded

00:54authority to restrict investment in Chinese high-tech sectors, including AI.

00:59For all things money, visit Benzinga.com.

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