Beijing: China has launched a new set of large state backed venture capital funds to strengthen investment in what it calls hard technology sectors, according to state media reports cited by Reuters.
The Chinese government has set up three new funds, each expected to have capital commitments of more than 50 billion yuan. Together, they are aimed at supporting long term and high risk technology projects that need heavy research and large funding over many years.
The focus of these funds will be on key areas such as semiconductor manufacturing, advanced industrial equipment, artificial intelligence hardware, new materials and other core technologies that are considered essential for the country’s future development.
Officials say the move is designed to provide what is often called patient capital. Many hard technology projects take a long time to deliver results and often struggle to attract private investment because returns are slow and uncertain. By stepping in, the state hopes to reduce funding gaps and give startups and research driven companies the stability they need to grow.
The funds are part of a wider push by China to strengthen self reliance in critical technologies, especially at a time of global supply chain pressures and ongoing technology restrictions from abroad. In recent years, Beijing has repeatedly stressed the importance of building domestic strength in chips, advanced manufacturing and scientific innovation.
State media also reported that the new venture capital structure will work with regional funds and specialised sub funds to channel money into early stage and growth phase projects across the country. Several local governments are expected to take part, helping direct investment into regional innovation hubs.
Analysts say the launch of these funds signals China’s determination to support deep technology industries over the long term and could reshape the country’s innovation landscape by giving hard technology companies greater access to stable financing.