Sequoia Capital China founder urges Beijing to invest in tech to fight climate change and build digital infrastructure

In his proposal ahead of the ‘two sessions’, Neil Shen said China should invest in ‘deep technology’ to achieve carbon neutrality and other high-priority goals
Shen is the only venture capital delegate in the Chinese People’s Political Consultative Conference, which convened on Friday

Two Sessions 2022 (Lianghui)

Jiaxing Li

Published: 6:00pm, 4 Mar 2022

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Neil Shen, China’s top venture capitalist, has made suggestions for investment to help the Chinese government boost technologies that would fight climate change and build digital infrastructure in a proposal submitted ahead of the “two sessions”, China’s biggest annual political event.

As a member of Chinese People’s Political Consultative Conference (CPPCC), the country’s top political consultative body, the founder and managing partner of Sequoia Capital China suggested that China go after “deep technology” to address challenges such as reaching carbon neutrality by 2060, the country’s ageing population, digital infrastructure, and agriculture modernisation.

Shen, a Yale-educated billionaire investor who is referred to as the “No 1 brother” of the investment industry, said in his proposal that breakthroughs in “basic sciences” are key to achieving carbon neutrality, and the Chinese government should set up a state-backed low-carbon fund and encourage green investing.

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The government should also step up development of neuroscience, Shen suggested, to cope with China’s rapidly ageing population. He called for the government to support frontier technologies to develop health monitoring products and wearable devices that could help combat brain disease.

To upgrade the manufacturing sector, Shen suggested using cloud computing and the Internet of Things.

Shen is the only venture capital delegate in the CPPCC, which started its annual meeting on Friday. The National People’s Congress, the other half of the two sessions, will convene on Saturday.

Shen’s proposals – which include suggestions for accelerating the development of new medicines to build a better presence in the international market and developing agricultural tech to boost productivity – are seen as advice aimed at supporting China’s national strategic goals.

CPPCC membership is largely an honorary title, but it offers access to China’s policymakers.

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As China’s regulatory rules squeeze the tech sector and create uncertainty for its financial backers, the veteran investor has been adjusting his portfolio over the past year. Amid the regulatory headwinds against internet companies, Shen offloaded stakes in some of his most valuable holdings, which include food-delivery giant Meituan and e-commerce platform Pinduoduo.

Investment behemoth Sequoia has since ventured into so-called hard technology, which covers segments that the government considers a priority. More than 80 per cent of Sequoia China’s portfolio is in such technologies, which include artificial intelligence and high-end manufacturing, Shen said at a conference in September last year.

The investment firm also established a 10 billion yuan (US$1.58 billion) fund last year with energy tech company Envision Group to invest in tech to help cut carbon emissions.