Sequoia’s Split Sends Warning to US Companies Doing Business in China

Sequoia Capital’s plan to split itself into three separate regional firms represents a major shift at one the world’s foremost venture capital firms. The dramatic move may insulate Sequoia from pending regulation, but it’s also a signal that ties to China are a growing liability in Silicon Valley.

The firm has long defended its Chinese investments both in public and — increasingly — in private. In recent years the firm has built up a quiet but powerful presence in DC, and just a few weeks ago argued to Capitol Hill staffers behind closed doors that its US and China operations are separate, according to people familiar with the efforts.