China Launches $21 Billion Venture Capital Push for Hard Tech Breakthroughs
China has launched three major venture capital funds to boost innovation in 'hard technology' sectors. Each fund holds over 50 billion yuan ($7.14 billion) in capital, targeting breakthroughs in fields like semiconductors, quantum computing, and aerospace. The move signals strong government backing for high-risk, high-reward research.
The funds are spread across three key economic zones: the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area. One of them, the Guangdong-Hong Kong-Macao Venture Capital Promotion Fund, was registered in Shenzhen’s Nanshan District on July 21, 2025, with a target capital of 50.45 billion yuan. It has already begun supporting early-stage startups such as Accelerated Evolution, Songyan Power, Turing Quantum, and Xinping Semiconductor.
The funds will focus on startups valued under 500 million yuan, with no single investment exceeding 50 million yuan. Their priority areas include integrated circuits, quantum technology, biomedicine, brain-computer interfaces, and advanced manufacturing. The initiative aims to build a stronger innovation ecosystem by involving local governments, state-owned enterprises, financial institutions, and private investors.
Success will depend on professional fund management, clear investment rules, and market-driven decisions. The goal is to strengthen China’s industrial capabilities and secure critical supply chains through targeted support for cutting-edge research.
The three funds mark a significant push to advance China’s position in hard technology. By funding early-stage startups in strategic sectors, the government hopes to speed up technological breakthroughs. The long-term impact will rely on how effectively the funds identify and nurture high-potential projects.
