(Adds investor comment, GGV funds background)
By Kane Wu and Roxanne Liu
Sept 22 (Reuters) - U.S. venture capital firm GGV Capital said on Thursday it plans to split its business into two, with one focused on Asia and the other on the United States, as political pressure mounts on American companies to limit investments in Chinese technology.
GGV said in a statement on social media X its U.S. partnership will invest primarily in North America, Latin America, Israel, Europe, India, and U.S. cross-border deals from offices in Silicon Valley and New York.
Its Asia partnership, headquartered in Singapore, will focus on China, Southeast Asia and South Asia, the firm said.
GGV's yuan-denominated funds will continue to be managed independently under its Chinese brand Jiyuan Capital, it added.
The separation will be completed by the end of the first quarter of 2024, GGV said.
GGV's move follows a similar one by Sequoia Capital, which in June said it is splitting its China and India/Southeast Asia businesses into two independent firms.
Economic challenges and geopolitical tensions have made fundraising and investment difficult in the world's second-largest economy, and eaten into global venture funds' returns.
GGV said in the statement it is evolving against "highly complex" operating environment.
The firm was put under review by a U.S. congressional committee in July that aimed to investigate American firms over their funding of Chinese technology companies. GSR Ventures, Walden International and Qualcomm Ventures were among the other names under review.
"GGV's move is not surprising and I think it is a correct decision," said James Huang, founder of Panacea Venture, a China-focused venture firm managing funds denominated in yuan and U.S. dollars separately.
Global investors' opinions on whether to invest in Chinese startups are varied amid growing geopolitical tensions, and dividing businesses with focuses on different regions could help GGV attract investors with different views on China risks, Huang said.
"I think investors who still feel confident about the Chinese market can contribute capital to GGV's funds that cover China, while those who feel cautious about China now have the option to work with GGV's U.S. and Europe-focused business," Huang said.
GGV Capital, which has around $9 billion in assets under management, has backed companies such as Airbnb, ByteDance, and Alibaba to establish itself as a cross-border venture capital company.
It has over 75 portfolio companies in China, its website shows, including mobile phone maker Xiaomi, social media platform Xiaohongshu and ride hailing champion Didi.