China Launches High-Tech Fund to Boost AI and Emerging Industries

Photo:China Launches High-Tech Fund

China's top economic officials have pledged to establish a state-backed fund to support technological innovation following the worldwide success of DeepSeeks most recent artificial intelligence reasoning model.

Zheng Shanjie, head of China's state economic planner, told reporters during the annual gatherings of China's rubber-stamp legislature and advisory body that the "State Venture Capital Guidance Fund" will focus on cutting-edge fields such as artificial intelligence, quantum technology, and hydrogen energy storage. The fund is expected to attract nearly 1 trillion yuan ($138 billion) in capital over 20 years from local governments and the private sector, added Zheng, chairman of the National Development and Reform Commission. US tech is putting pressure on China with restrictions, and Chinese leaders see  technological development and Digital transformation with high-end chips, quantum computing, robotics and AI as a growth for manufacturing Industry.

At a news conference, Zheng lauded China's rapid technological development in microchips,  AI-based language models and humanoid robots. The government is prioritizing tech innovation compared to domestic demand, and China's leaders have also started to show a stronger dedication to promoting consumption as their primary policy objective. The Chinese government will soon unveil a “special action plan to boost consumption,” said Zheng, the economic official. China is launching special actions to boost domestic consumption,” HSBC economists led by Jing Liu wrote in a research note on Wednesday.