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US-China tensions

China ties become a fundraising hurdle for startups in the U.S.

Washington's scrutiny of investments into China creates chilling effect at home

Rising tensions between Washington and Beijing have raised new hurdles for Chinese and Chinese American founders in the U.S. at a time when funding is already becoming harder to come by.   © AP

PALO ALTO, U.S. -- Having a Chinese background was once a selling point for startup founders pitching to investors in the U.S., as it allowed them to cite valuable connections to and knowledge of Asia's biggest economy.

Rising tensions between Washington and Beijing, however, have raised new hurdles for Chinese and Chinese American founders in the U.S. at a time when funding is becoming harder to come by for a variety of reasons.

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