BEIJING, Dec 26 (GeokHub) China has launched three new venture capital funds aimed at investing in so-called “hard technology” sectors, state broadcaster CCTV reported on Friday, underscoring Beijing’s push to accelerate breakthroughs in strategically critical industries.
According to the report, capital contribution plans for the funds have been finalised, with each fund exceeding 50 billion yuan ($7.14 billion), bringing the combined size to more than 150 billion yuan.
An official said the funds will focus primarily on early-stage startups, targeting companies valued at less than 500 million yuan, with individual investments capped at 50 million yuan to spread risk and encourage broader innovation.
Key Focus Areas
The funds are expected to back companies operating in sectors China considers vital to long-term competitiveness and national security, including:
- Integrated circuits and semiconductors
- Quantum technology
- Biomedicine
- Brain-computer interface technology
- Aerospace and advanced manufacturing
Officials drew a clear distinction between “hard technologies”, which involve complex scientific and engineering breakthroughs, and “soft technologies” such as internet services and consumer platforms.
Strategic Context
The initiative comes as China steps up efforts to build domestic capabilities in cutting-edge fields amid rising geopolitical tensions and export restrictions affecting advanced technology supply chains. State-backed funding has become a central tool in Beijing’s strategy to nurture homegrown innovation and reduce dependence on foreign know-how.
By concentrating capital on early-stage companies and limiting single investment sizes, the government appears to be aiming for broad-based innovation rather than backing a small number of large firms.
The move reinforces China’s long-term commitment to reshaping its venture capital landscape around advanced science and engineering, even as global competition in high-tech sectors continues to intensify.
