At one of the entrepreneurial seminars at Stanford early this year, John Doerr of Kleiner Perkins Caufield & Byers, a premier Silicon Valley VC firm, said very clearly that KPCB was not going to China any time soon, simply because they didn’t quite understand the capital market there.
Today’s blog post by Matt Marshall on SiliconBeat reveals that KPCB is finishing up its “KP China” plan. If this is true, KPCB’s move to China can very well make Shanghai a “second major node of venture capital after Silicon Valley.”
This is probably true. I remember of receiving an email back in August from a recruiter looking to add a “key member” for KPCB with the background in: 
“operating experience, conducted business in mainland China, speak fluent Mandarin and English, and possess a technical background in any of the following: semiconductors, materials science, or the development of alternative energies.”