Sequoia Capital’s plan to split itself into three separate regional firms represents a major shift at one the world’s foremost venture capital firms. It also shows the impact of rising political tensions between the U.S. and China on an institution that’s made huge profits in both.

Sequoia on Tuesday announced that its India, China and U.S. units — which share investors and some returns — would officially become separate entities. "It has become increasingly complex to run a decentralized global investment business,” Sequoia leaders said in a statement, citing the pitfalls of a centralized back office.

Left unsaid is that the move is a concession to increasing pressure in the U.S. to distance Silicon Valley from China. Sequoia’s China investments have been the subject of criticism inside the normally clubby world of technology investing, and the firm is facing a looming executive order from the administration of U.S. President Joe Biden that could curtail U.S. investments into foreign entities. The measure targets the practices that helped Sequoia generate billions in profits overseas for more than 15 years, despite recent market tumult.