China
China Allocates $14.3 Billion to Boost Technology Sector Through National Startup Fund: China has taken a major step toward technological sovereignty by allocating 100 billion yuan ($14.3 billion) for the development of its technology sector. The Chinese government has officially established the National Startup Investment Guidance Fund, along with three large regional funds, as part of a broader strategy to accelerate innovation, strengthen startups, and optimize long-term investment.
According to foreign media reports, the funding will come from the issuance of ultra-long-term special sovereign bonds, highlighting Beijing’s commitment to supporting strategic industries despite tighter fiscal conditions. Through this initiative, China aims to build a stronger domestic technology ecosystem amid intensifying global competition.
The newly launched national fund is structured with a 20-year lifecycle. During the first 10 years, it will actively invest in high-potential companies, while the remaining 10 years will focus on exits. Importantly, the fund will prioritize investments in small IT startups with a market capitalization of no more than 500 million yuan, ensuring early-stage innovation receives targeted support.
Moreover, the government has clearly defined the fund’s priority sectors. These include artificial intelligence, biopharmaceuticals, quantum computing, aerospace, and sixth-generation (6G) technologies. By channeling capital into these areas, China seeks to secure leadership in next-generation industries that are critical to economic growth and national security.
In addition to the national vehicle, authorities have created three regional funds through partnerships supported by shares from the national fund. Notably, investments by each regional fund could exceed 50 billion yuan, significantly amplifying the overall impact of the initiative. As a result, both national and regional ecosystems are expected to benefit from coordinated capital deployment.
This move comes as China intensifies efforts to achieve breakthroughs in chip manufacturing and advanced technologies, particularly as competition with the United States continues to grow. At the same time, tougher fiscal conditions—including rising debt risks and slower income growth—are forcing policymakers to adopt more disciplined and efficient investment strategies.
From the government’s perspective, officials acknowledge that “developing regions and promising industries still face a lack of investment and innovation.” Therefore, the state fund will operate according to market principles, with professional fund managers playing a key role in investment decision-making. This approach aims to balance state guidance with commercial discipline, improving returns and innovation outcomes.
Notably, the National Development and Reform Commission (NDRC) first announced plans for a state-owned technology fund in March 2025. At the time, authorities estimated the fund’s potential could reach 1 trillion yuan, driven by contributions from local government funds and private capital alongside central funding.
