Following the relocation of several global Chinese companies' headquarters out of China, leading private equity and venture capital firms like Hillhouse Capital and GGV have been expanding their non-Chinese Asian operations. Their aim with this strategic shift appears to be to mitigate the risks associated with rising geopolitical tensions between Beijing and Washington.

But it prompts a crucial question: Can this "China-shedding strategy" adequately address the firms’ complex challenges, or might it lead to unintended consequences, given their still substantial assets and investments in China?

Over the past year, high-profile Chinese companies in the U.S. have been expanding beyond China, motivated by government policy directives and slower growth at home, and are actively rebranding themselves to shed their China affiliation. These companies compete in sectors traditionally dominated by U.S. firms and have been attracting media attention and regulatory scrutiny. To better align themselves with global markets and reduce their perceived connections to China, they've been redefining their domiciles, while attempting to address national security concerns and hone their reputations.