• Aerial view of Silicon Valley at dusk.

Aerial view of Silicon Valley at dusk. (Photo : Getty Images)

According to CB Insights, a market intelligence company, 26 percent of startups in the U.S. valued at more than a billion dollars have an investor based in the Greater China Region. As Chinese investments rise, U.S. venture capital investments drop.

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It is reported that Chinese investors participated in 160 U.S. tech deals in the first nine months of 2016. Investments amounted to $3.5 billion and more are on the way.

New Oriental, an education company, launched A-Plus at a recent event in Silicon Valley. It is a fund for investing in U.S. tech startups amounting to $100 million.

Chinese investors also poured $100 million at the InnoSpring's portfolio of startups last year.

Xiao Wang, the CEO of InnoSpring, said: "China--they have ambition, they don't want to be the second, they don't want to continuously catch up. They want to have an advantage over the next wave of technology innovation, which perhaps new platform like virtual reality, mixed reality, drones, maybe IoT, whatever will become the next dominant platform."

IngDan, another Chinese company, has also opened a tech experience room. It is one of China's largest platforms for connecting startups to a massive supply chain. People can find everything here from a personal purifier to a levitating speaker to a designer pancake maker.

IngDan is also a partner in a smart tech fund that will bring in startups to incubate right next to their showroom. It is said to be approximately worth $50 million.

"For U.S. companies, they need to tap into China market as well. We can host like 40 to 50 people here. By helping these startups to succeed, we can bring more people, create more jobs," said IngDan's CTO, Shipeng Li.

Li expects the growth of their smart tech fund and said that there is a high probability that they will launch other U.S. startup funds in the near future.