Beijing’s veto of Meta’s Manus deal signals a shift in the global AI race

0:00 How do you think this Manis episode changes the way that VCs work, you know,

0:05 on the ground in China but as well as as as VCs from from the US?

0:10 You know, are there at this point options

0:12 for American companies that still want to invest in China?

0:15 Yeah, there's still options.

0:17 Um one of the structures that uh is becoming

0:21 increasingly popular right now is um so-called parallel structure.

0:25 So, if US investors,

0:28 um this would be like pensions and endowments, um uh institutional LPs,

0:33 if they still want to gain exposure to China through the VCs and PEs,

0:39 what they can do is invest into uh a vehicle that is only for US investors.

0:46 And then the the GPs, so the VC, for example,

0:49 who's raising money would create another

0:51 vehicle just for all the other investors.

0:55 And then uh they it would still be part of the same fund.

1:00 Um they can go in and invest in companies that are non-sensitive together.

1:04 For example, consumer um industries.

1:08 Um and then for any sensitive um company like um advanced AI,

1:15 the US investors would opt out.

1:17 What it's um the reason it's appealing is it

1:20 just lessens the reporting burden for these US investors.

1:25 And um structurally, it's uh clean um for, you know, the separation.