(Bloomberg) -- There are “signs of hope” in the U.S.-China relationship, especially when it comes to health care and deep technology such as artificial intelligence, according to venture capitalist Kai-Fu Lee.

“Deep tech is an area China is committed to making work,” the chief executive officer of Beijing-based Sinovation Ventures said Thursday at the Bloomberg Wealth Summit in New York. “Now is a window of opportunity.” 

The Chinese capital market is open to U.S. investors, he said in a panel moderated by Bloomberg Television’s Caroline Hyde. His venture capital firm -- one of the first from China to have a presence in the U.S. -- is able to invest in almost any Chinese company, and he thinks the Beijing would like many of the nation’s firms to be listed in the U.S.

China has sought to reassure investors that venture capital still has a role to play in the technology sector after a government crackdown against private enterprise wiped out $1.5 trillion in market value last year. The actions opened the door for a new generation of startups that have been selected under a government program aimed at fostering a technology industry that can compete with Silicon Valley. 

Artificial intelligence and robotics are increasingly being used in Chinese factories, he said. The government is interested in helping support those areas, as well as the semiconductor industry. 

“Where the VC money is going are AI, semiconductor, drug discovery and that’s what we spend most of our time on,” he said.

‘Saving Lives’

The Covid-19 pandemic -- especially the latest virus outbreak in Shanghai -- has spurred collaboration between the nations, he said.

“This is not [intellectual property],” said Lee, a former Google executive. “This is saving lives. I’m somewhat optimistic that when a new drug is invented, that will be cross-border, a new treatment will be cross-border.”

During an earlier session at Thursday’s wealth summit, Ares Management Corp. Chief Executive Officer Michael Arougheti said he saw opportunities in distressed Chinese assets.

“One of the highest risk-adjusted returns I see now is for example investing distressed in Asia-Pacific and China specifically,” said Arougheti, whose Los Angeles-based firm is one of the dominant players in private credit.

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