Businesses organizations in San Francisco and Shanghai have joined forces. San Francisco's Bay Area Council and a similar organization in Shanghai, the Yangtze Council, signed a pact to promote business and investment opportunities in both regions. The groups will focus on the development of information technology, biotechnology, transportation industries, and alternative energy.
The Bay Area Council is made up of 275 large firms, including Google Inc. and Cisco Systems Inc., which have invested heavily in China. The Yangtze Council includes commercial hubs in the Yangzte River Delta. The head of the Yangzte Council, real estate magnate Vincent Lo, said he would personally back the venture fund.
There will be a venture capital fund of $200 million to $250 million to support technological innovations. The money will come from both the United States and China, but officials say it's too early to give more specific details on which companies will be supported.
Although two private businesses signed the initial agreement, both say that they have the support of their respective local governments.
