William, this is from a friend who is Chinese and works with a family office to do US-China investments:
To answer the question of William, some Chinese funds have been indeed invested in startups, particularly in the tech sector. There are no such restrictions that the Chinese can only invest in hard assets or proven concepts, but it is the mindset of the majority. The reality is that they have the ability to generate very high returns as well as manage the downside risks well at home. In the US, or in some cases in Europe, the motivation of asset allocation is largely directed to safe investment or branding investment. Of course, some is intended to acquire technologies, not necessarily cutting-edged, to apply to their home market.
Having said so, there are still some capital from China being invested in tech startups in the US, mostly established and run by Chinese nationals or origins. They may increase this type of investment gradually with the focus on mobile, biotech and etc. The motivation is, again, not to benefit directly from the high potential here but rather their applications in China. Very few, if any, can afford to overlook the emerging mass market.