Major U.S. banks are financing record artificial intelligence investment at home while also helping Chinese AI and semiconductor companies raise billions of dollars, highlighting the financial ties that persist despite expanding U.S. national-security restrictions.
By yourNEWS Media Newsroom.
As President Donald Trump and Chinese leader Xi Jinping prepared to attend a state dinner at the White House on Thursday, some of Wall Street’s largest banks remained deeply involved in financing technology expansion on both sides of the U.S.-China rivalry over artificial intelligence and advanced semiconductors.
Goldman Sachs, Morgan Stanley, Citigroup and JPMorgan have participated in major Chinese technology offerings in 2026 even as Washington has tightened controls intended to restrict China’s access to sensitive American technology and certain forms of U.S. investment.
U.S. investment banks served as bookrunners on 19 Chinese high-technology equity offerings valued at $17.2 billion this year, representing nearly 30% of total issuance in the sector, according to LSEG data reported by Reuters.
Those transactions have included companies operating in artificial intelligence, semiconductor manufacturing and components used in the infrastructure supporting AI systems.
Among the largest deals was a roughly $6.8 billion Hong Kong share offering by Chinese optical-component manufacturer Zhongji Innolight. Goldman Sachs, Morgan Stanley and Citigroup were among its joint global coordinators.
The offering followed the Defense Department’s decision in June to add Zhongji to its list of Chinese military companies.
Zhongji manufactures optical transceivers that transfer data inside AI data centers, placing the company within the physical infrastructure supporting increasingly powerful computing systems. The company generated 61.7% of its first-quarter revenue from the United States and said its Pentagon designation had not affected orders or operations.
Goldman Sachs and Morgan Stanley also participated in Hong Kong offerings for Chinese artificial intelligence developer MiniMax and semiconductor companies Montage Technology and Shanghai Iluvatar CoreX Semiconductor, according to Reuters reporting.
JPMorgan participated in financing another company connected to China’s AI supply chain.
J.P. Morgan Securities (Far East) Limited identified itself as a joint sponsor of Victory Giant Technology’s Hong Kong global offering in an April filing with the Hong Kong Stock Exchange.
Victory Giant produces printed circuit boards used in AI servers and raised approximately $2.6 billion through its Hong Kong share sale, according to Reuters.
At the same time, the banks and broader credit markets are helping finance an extraordinary expansion of artificial intelligence infrastructure inside the United States.
Technology companies have increasingly relied on bonds, traditional bank financing and private credit to pay for the enormous quantities of data centers, electrical infrastructure and computing equipment required to build and operate AI systems.
Goldman Sachs estimated that almost $500 billion in AI-related debt had been issued during 2026 through August.
JPMorgan separately estimated that the five largest U.S. hyperscalers will spend about $697 billion on capital expenditures during 2026 as technology companies compete to expand computing capacity.
The overlapping financing activity illustrates how deeply integrated U.S. and Chinese capital markets remain even as the federal government increasingly views China’s development of advanced artificial intelligence and semiconductor technologies through the lens of national security.
Washington has imposed restrictions on some American investment into sensitive Chinese technology through the Treasury Department’s Outbound Investment Security Program.
The program applies to certain U.S. transactions involving China, Hong Kong and Macau in three technology categories: semiconductors and microelectronics, quantum information technologies and artificial intelligence.
Some transactions are prohibited outright, while others require U.S. persons to notify the Treasury Department.
The regulations, however, do not amount to a comprehensive prohibition against U.S. financial institutions doing business with Chinese companies operating in those sectors.
Treasury guidance on the rules says a U.S. investment bank that provides underwriting services for an initial public offering by a covered Chinese company generally is not itself engaging in a covered transaction unless the bank acquires a covered equity interest through the underwriting process.
The regulations also contain an exception for qualifying investments involving publicly traded securities.
Treasury further clarified in December 2025 that securities obtained by a U.S. financial institution while underwriting certain follow-on offerings may qualify for the publicly traded securities exception.
The ability of American financial institutions to participate in such offerings has nevertheless drawn congressional scrutiny when Chinese companies involved are considered strategically significant by the U.S. government.
In July 2025, the House Select Committee on the Chinese Communist Party subpoenaed JPMorgan CEO Jamie Dimon and Bank of America CEO Brian Moynihan over their banks’ participation in the Hong Kong listing of Chinese battery manufacturer Contemporary Amperex Technology Co. Limited, known as CATL.
The Pentagon had placed CATL on its list of Chinese military companies, a designation the company disputed.
Republican Michigan Rep. John Moolenaar, chairman of the House China committee, called on U.S. financial institutions to withdraw from the offering because of national-security concerns.
Cross-border investment has not been limited to American capital flowing toward Chinese companies.
Chinese investors also continue to hold substantial positions in U.S. markets, including companies at the center of the American semiconductor industry.
U.S. equities account for nearly half of the approximately 1 trillion yuan, or $150 billion, managed by Chinese outbound mutual funds. Chinese investors have increased their holdings in American semiconductor companies including Micron Technology, AMD, Sandisk, Lam Research and Applied Materials, according to Reuters.
Chinese and Hong Kong-based investors have also increased their involvement in U.S. artificial intelligence financing.
The value of American AI funding rounds involving investors based in mainland China or Hong Kong climbed from approximately $436 million in 2023 to about $8.9 billion through the middle of September 2026, according to S&P Global Market Intelligence data cited by Reuters.
The figures show capital continuing to cross between the world’s two largest economies even as their governments treat artificial intelligence, semiconductor technology and the infrastructure supporting them as increasingly consequential areas of strategic competition.
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