Sequoia investment fund to spin off Chinese and Indian divisions into separate companies
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The American venture investment fund Sequoia will allocate the Chinese and Indian divisions into separate companies. They write about it Bloomberg, The Wall Street Journal and other American media, citing a letter that the investment fund sent to investors.
As a result, by March 2024 there will be three independent companies operating in the US, China and India. As noted in the letter, “it is becoming increasingly difficult to manage a decentralized global business”, there is a conflict of interest between different departments. There are a number of other reasons for reorganizing the business.
According to the American media, the separation of the Chinese division may be, among other things, due to increased pressure from the Chinese authorities on American and other Western companies. In April, Chinese authorities conducted a search at the Shanghai office of the American consulting company Bain. In March, searches and detentions of employees of the American audit company Mintz took place in China. Also China fined consulting company Deloitte for $30.8 million.
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