China Announces Creation of National Venture Capital Fund to Boost Innovation
China plans to create a national venture capital fund aimed at fostering innovation. The initiative is designed to support startups and emerging technologies, positioning the country as a leader in innovation and development. This move signifies a strategic effort by the government to enhance its investment in new and promising ventures.
TroibNews 
China is set to create a national venture capital guidance fund aimed at bolstering the growth of innovative enterprises, announced Zheng Shanjie, the head of the nation's top economic planning body, during a press conference in Beijing on Thursday.
This new fund is intended to tackle the common funding shortages that technology companies experience in their early stages, effectively utilizing venture capital to encourage technological innovation, speed up the commercialization of significant scientific and technological achievements, promote technological self-reliance, and cultivate new high-quality productive forces, Zheng said.
With a lifespan of 20 years, this fund is intended to be more enduring than the typical equity funds, and it is projected to draw nearly 1 trillion yuan in investment from local governments and private investors, Zheng noted. The fund will concentrate on advanced sectors such as artificial intelligence, quantum technology, hydrogen energy, and energy storage, he added.
According to Zheng, a market-oriented strategy will be employed to invest in start-ups and early-stage companies, while also considering small, medium, and micro-enterprises in their early to mid-growth phases. This approach aims to support original and disruptive innovations, facilitate key technological breakthroughs, and promote the progression of strategic emerging and future industries.
This initiative follows the government work report presented on Wednesday at the annual session of the National People's Congress, the country’s legislative body. The report indicated that China aims to enhance its new quality productive forces according to local circumstances and advance the development of a modernized industrial system, which includes effectively managing the balance between fostering new growth drivers and upgrading existing ones.
Camille Lefevre contributed to this report for TROIB News
This new fund is intended to tackle the common funding shortages that technology companies experience in their early stages, effectively utilizing venture capital to encourage technological innovation, speed up the commercialization of significant scientific and technological achievements, promote technological self-reliance, and cultivate new high-quality productive forces, Zheng said.
With a lifespan of 20 years, this fund is intended to be more enduring than the typical equity funds, and it is projected to draw nearly 1 trillion yuan in investment from local governments and private investors, Zheng noted. The fund will concentrate on advanced sectors such as artificial intelligence, quantum technology, hydrogen energy, and energy storage, he added.
According to Zheng, a market-oriented strategy will be employed to invest in start-ups and early-stage companies, while also considering small, medium, and micro-enterprises in their early to mid-growth phases. This approach aims to support original and disruptive innovations, facilitate key technological breakthroughs, and promote the progression of strategic emerging and future industries.
This initiative follows the government work report presented on Wednesday at the annual session of the National People's Congress, the country’s legislative body. The report indicated that China aims to enhance its new quality productive forces according to local circumstances and advance the development of a modernized industrial system, which includes effectively managing the balance between fostering new growth drivers and upgrading existing ones.
Camille Lefevre contributed to this report for TROIB News
