China has launched three major venture capital funds with a combined capital exceeding $7 billion to fuel growth in hard tech sectors like quantum computing, biomedicine, and aerospace, aiming to boost its technological independence.
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| China's launch of three venture capital funds with over $7 billion in capital aims to support early-stage startups in critical sectors like quantum technology, integrated circuits, and aerospace to accelerate innovation and reduce reliance on foreign technologies. Image: CH |
Beijing, China – December 26, 2025:
In a bold move to accelerate its technological growth, China has unveiled three venture capital funds with a combined capital of over 50 billion yuan (approximately $7.14 billion). These funds are specifically designed to target early-stage startups in "hard technology" sectors, marking a strategic pivot away from soft technologies like internet services. The focus will be on high-tech industries critical to national development, including quantum computing, biomedicine, aerospace, and integrated circuits.
The announcement, made public by state broadcaster CCTV, highlights China's growing efforts to assert its technological independence, with the funds being used to back startups valued at less than 500 million yuan. The maximum investment per company will be capped at 50 million yuan, allowing for targeted support to emerging firms with the potential for disruptive innovation.
The focus on "hard technologies" reflects China’s desire to strengthen its capabilities in sectors that are pivotal to future economic and strategic development. Integrated circuits, quantum technology, and aerospace are all sectors where China seeks to gain an edge, especially as geopolitical tensions and trade restrictions continue to challenge the country’s access to foreign innovation.
With the global race for technological dominance intensifying, these venture capital funds represent a strategic investment in the future of China's high-tech industries. In particular, integrated circuits (ICs) are essential to everything from consumer electronics to military applications. China’s dependence on foreign suppliers for these critical components has been a long-standing concern, and this new initiative aims to reduce that reliance.
By focusing on early-stage startups, these funds are designed to nurture and scale companies with the potential to become global leaders in their respective fields. This early-stage focus is important, as it enables these young companies to secure the capital they need to innovate and scale without facing the typical financial roadblocks that many startups encounter.
Unlike more traditional forms of investment, these funds are specifically aimed at smaller companies, with no single investment exceeding 50 million yuan. This ensures that the funds can be spread across multiple startups, giving a wide range of companies the chance to benefit from the capital influx.
An interesting aspect of this initiative is the exclusion of "soft" technologies, such as internet services and social media, from the funds’ scope. The Chinese government has made a clear statement that its priority lies with technologies that are fundamental to industrial and scientific advancement. This exclusion underscores a broader shift in China’s technology policy, focusing on industries with tangible, long-term impacts, rather than areas like e-commerce and online services, which have already seen rapid growth in the country.
The launch of these funds also has broader implications for global technology ecosystems. As China seeks to bolster its capabilities in hard tech, it could shake up international markets, particularly in the semiconductor and aerospace sectors. The country's growing self-reliance in these technologies could reduce its vulnerability to external pressures, while simultaneously positioning China as a stronger competitor on the global stage.
In sum, China’s $7 billion venture capital initiative is a clear signal of its intention to lead the world in the high-tech industries that will shape the future. By focusing on critical areas such as biomedicine, integrated circuits, and quantum computing, China is positioning itself as a dominant force in global innovation, with long-term goals of reducing its dependence on foreign technologies and becoming a self-sufficient tech powerhouse.