China's military ties with US-backed firms have come under scrutiny after Hillhouse Investment Management, a Chinese investment firm funded by Yale and Princeton universities, purchased part of WuXi AppTec's China-based clinical research services business in October.
The deal has raised concerns due to WuXi AppTec's alleged role in helping Beijing identify Uyghur Muslims in Xinjiang, a region where China has been accused of human rights abuses. Mike Gallagher, former chairman of the House Select Committee on the CCP, wrote in February 2024 that WuXi AppTec operates genetic testing centers established in coordination with the People's Liberation Army.
US Universities' Ties to Chinese Firms
Yale and Princeton are among the US universities that have invested millions of dollars in Hillhouse Investment Management. Yale initially invested $20 million in 2005 and has since seen a $2 billion return. Stanford also announced plans to invest $200 million in the fund in 2015.
The investment has sparked concerns among lawmakers, with House Speaker Mike Johnson demanding an end to investments that benefit China's aggression. Rep. Greg Murphy's Protecting Endowments From Our Adversaries Act aims to levy stiff taxes on US colleges and universities that invest in Chinese companies.
Lei Zhang, founder of Hillhouse Investment Management, has deep ties to Yale and has invested in companies linked to China's military, including Tencent. Zhang was also a business partner of Hunter Biden, according to a report by the New York Post in April 2023.
Other reported investors in the fund include left-wing organizations like the Ford Foundation and the Pritzker Foundation, as well as cultural institutions like the Metropolitan Opera. The Washington Free Beacon reported in 2021 that former secretary of state John Kerry has invested $1 million in Hillhouse.