Silicon Valley veteran and new Intel CEO, Lip-Bu Tan, has been reported by Reuters to have invested hundreds of millions of dollars in Chinese companies, some of which have connections to the Chinese military. Tan has facilitated these investments through entities such as Walden International and holding companies Seine and Sakaytra.
According to Reuters, Tan invested at least $200 million in Chinese businesses between 2012 and 2024, including at least eight companies with ties to the People’s Liberation Army. Tan’s role as leader of a company holding a $3 billion contract with the Department of Defense for chip manufacturing and two other DoD contracts has sparked concerns amid worsening U.S.-China relations.
Andrew King, a partner at Bastille Ventures, expressed to Reuters that Tan might be unfit to head a company competing against China, particularly one with significant intelligence and national security implications like Intel, given its deep ties to America’s defense ecosystem.
Intel did not respond to requests for comments from Fortune, though a spokesperson for Tan mentioned that he had completed a mandatory questionnaire disclosing any potential conflicts of interest.
Amid the early months of the Trump administration, former U.S. President Donald Trump and Chinese President Xi Jinping exchanged economic hostilities via tariffs, with U.S. tariffs on China at 145% and China’s tariffs on the U.S. at 125%.
Intel remains the sole U.S.-based manufacturer of the most advanced computer chips, while Tan is recognized as one of Silicon Valley’s most experienced investors in Chinese technology. Upon his appointment, Tan was considered an ideal choice to revitalize Intel, initially receiving a positive reception from investors.
Although concerns rise over Intel’s leadership under an individual investing in Chinese firms, comparisons have been drawn to Elon Musk, who balances roles in both technology and government as Tesla CEO and adviser to Trump, while Tesla operates its largest factory in China.
Stephen Diamond, a professor at Santa Clara law school, commented to Fortune on potential national-security concerns surrounding Tan’s investments, noting comparisons to Musk’s substantial investment in China.
Tan’s investment endeavors are executed through Walden International, a venture-capital firm founded in the 1980s in San Francisco, alongside Hong Kong-based companies Sakarya Limited and Seine Limited. Reuters reports that between March 2012 and December 2024, Tan injected around $200 million into various Chinese advanced manufacturing and chip companies, some of which operate as contractors and suppliers to the People’s Liberation Army.
Reuters further detailed that Tan has control over more than 40 Chinese companies and funds, holding minority stakes in over 600 others, with many stakes shared by Chinese government entities. Walden International is currently a joint participant in 20 investments funds and companies with Chinese governmental funds or state-owned enterprises, based on Chinese corporate records.
Walden has jointly invested in several Chinese tech firms alongside China Electronics Corporation (CEC), a noted Chinese military supplier. In a 2020 executive order, Trump prohibited purchasing or investing in “Chinese military companies,” including CEC.
A Reuters report mentioned Walden and CEC as joint stakeholders in the surveillance company Intellifusion, which was blacklisted by the U.S. Department of Commerce in 2020 over alleged human rights abuses in Xinjiang. Walden International did not comment on Fortune’s inquiries, but an unnamed source informed Reuters that Tan had withdrawn from positions in Chinese entities, though Reuters could not confirm this.
Stephen Diamond emphasized to Reuters the significance of managing China ties responsibly within Intel’s business leadership, given the sensitive political context. The U.S. Department of Commerce’s Entity List regulates export bans but does not restrict investments, and the Pentagon excludes companies connected to the Chinese military from its supply chain unless listed on the U.S. Treasury’s Chinese Military-Industrial Complex Companies List.
No evidence suggests Tan currently invests in companies on this list, according to Reuters. Diamond mentioned that corporate governance concerns would arise if Tan were involved in transactions with companies where he is a director or shareholder.
This report was initially published on Fortune.com.
