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China has launched a significant new initiative to accelerate technological innovation and secure a competitive edge in global markets.
The country’s top economic officials announced the creation of a $138 billion fund to promote cutting-edge industries, including artificial intelligence (AI), quantum technology, and renewable energy.
The move is part of China’s broader strategy to ensure long-term growth by investing in critical technologies such as AI, hydrogen energy storage, and semiconductors.
Zheng Shanjie, head of China’s National Development and Reform Commission (NDRC), discussed the new “state venture capital guidance fund” during a press briefing on Thursday.
According to CNN, he explained that the fund aims to attract nearly 1 trillion yuan (about $138 billion) over the next 20 years from local governments and private sector investors.
The initiative is designed to support emerging technologies and encourage startup companies in high-risk, long-term projects that are key to China’s future economic development.
Zheng emphasized the importance of these technologies, stating, “Scenes once only seen in science fiction are now becoming reality.
We are steadily moving toward the global frontiers of technology and innovation.” He also hinted at the role of international pressures, particularly from the United States, as a driving factor behind China’s commitment to innovation, asserting that external challenges only accelerate their push for self-reliance in technology.
One of the most notable recent advancements in China’s tech sector is the development of DeepSeek’s R1 large language model, which closely competes with global players such as OpenAI’s GPT-4 and Meta’s Llama.
Despite US restrictions on high-powered AI chips, DeepSeek achieved remarkable success in developing an AI model that offers similar capabilities at a significantly lower cost, showcasing China’s growing technological independence.
China is propelling itself to the forefront of AI innovation, aiming to outpace its global competitors by 2030.
From AI-powered robots accompanying children in homes, to a $1.4 trillion investment plan, these initiatives underscore the nation's ambition.
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China Unveils Major 20-Year Fund to Support Innovation in High-Tech Sectors
The fund’s focus will be on sectors such as AI, quantum computing, hydrogen energy storage, and semiconductors. These fields are considered essential for China’s ambitions to lead in the next generation of global technologies, TVI Today said.
The state is also expanding financial support for these industries, with new programs aimed at helping tech companies raise funds for innovation and projects. This includes a new bond platform and increased funding for the tech industry re-lending program.
The launch of the national venture capital guidance fund is seen as a major step in China’s efforts to advance its technological capabilities, especially in the face of ongoing global competition and challenges.
The country is determined to ensure its position at the forefront of industries like AI and quantum computing, where the US has imposed restrictions to limit China’s access to critical technologies.
The fund’s long-term, 20-year focus sets it apart from traditional venture funds, positioning it as a key driver of innovation for years to come.
Premier Li Qiang also highlighted China’s focus on emerging industries in his recent government work report.
Li underscored the importance of boosting funding for sectors like quantum technology, bio-manufacturing, and 6G technology, further solidifying the nation’s ambitions to build a modernized industrial system.