China accelerates promotion of innovation with a fund of $ 138 billion and renovations

In response to geopolitical pressures and economic slowdown, China announced during the 14th National Popular Assembly (APN) a package of measures to transform “New quality productive forces” in growth levers to 2025.

Among the initiatives, we highlight the creation of a National Risk Capital Orientation Fund. With an estimated contribution of 1 trillion yuans ($ 138 billion), the fund will feature investments from local and private sector governments. The goal is to strengthen innovative companies and channel investments for strategic areas such as heavy technology, artificial intelligence and biotechnology, maintaining a long -term approach and greater risk tolerance.

The plan, detailed in an interview by the head of the National Development and Reform Commission, Zheng Shanjie, includes:

• National Risk Capital Fund: With the goal of attracting 1 trillion yuans ($ 138 billion), the fund will prioritize disruptive technologies (IA, quantum, biomanufature) and tolerate long -term risks.
• Science and Technology Council in the title market: Launched by Banco Popular da China (PBOC), will facilitate emissions of specialized titles to fund startups and R&D projects.
• Expansion of loans for innovation: The technical transformation credit program will be expanded from 500 billion to up to 1 trillion yuans.

Zheng pointed out that the goal is to “channel private and government investments for strategic sectors, maintaining a market -oriented approach.”

Experts believe that this more pro-ennovation stance will strengthen the trust of investors and entrepreneurs, as well as stimulating the vitality of the market. Resource allocation aims to direct more investments to emerging industries and next -generation technologies, essential for the modernization of the country’s industrial system.

According to Li Chao, chief economist at Zheshang Securities, the development of these new productive forces will be essential to boost China’s potential for economic growth in the long run. “Future industries can be a particular focus, and we foresee new industrial plans to outline their growth trajectories,” he said.

Critical technologies: the engine of Chinese growth

In addition, the Chinese government will expand efforts to strengthen research in critical and revolutionary technologies such as quantum computing and 6G technology. The participation of private companies will be encouraged, considering their fundamental role in the efficiency and application of new technologies.

The Government’s work report 2024 defines clear priorities:

1. Biofabrication: Sustainable production of materials and medicines via biotechnology.
2. Quantum technology: Computing development and post-classical cryptography.
3. AI incorporated: Integration of artificial intelligence in traditional industries.
4. 6g: Preparation for the next generation of telecommunications.

For Li Chao, chief economist at Zheshang Securities, “the AI ​​race is central: the US and China vying for systemic advantage, not just commercial.” China already has 40% of Global AI patents, but seeks to reduce dependence on foreign chips.

Reforms in the financial system to support innovation

Banco Popular da China, the country’s Central Bank, has also announced complementary measures to strengthen financial support for innovation. These include the launch of a Science and Technology Council in the title market later this year. The initiative will facilitate the issuance of specialized securities by financial institutions, technology companies and private capital investment funds, enabling the financing of scientific and technological innovation.

The New Science and Technology Council in the title market, announced by PBOC Governor Pan Gongsheng, is a key piece:

• Specialized titles: Tech companies, private equity funds and financial institutions may issue backed securities in R&D assets.
• Liquidity for Startups“This will allow early -stage companies to access capital without just depending on Venture Capital,” explained Ming Ming of Citic Securities.

The model resembles initiatives like Nasdaq, but with state focus on strategic sectors.

According to Pan Gongsheng, governor of Banco Popular da China, this mechanism will not only diversify financing tools, but will also represent a fundamental advance in financial support for the technological sector. In addition, the Central Bank will expand its loan program for technological innovation and technical transformation, raising the available amount of 500 billion yuans to up to 1 trillion yuans.

Private sector as a partner

Although the state leads investments in basic research (eg quantum projects), Li Chao points out that “private companies are crucial for applied innovation.” In 2023, giants like Huawei and Baidu invested $ 23 billion in R&D, but the challenge is to scale smaller startups.

• Tax incentives: Companies in Innovation Zones will have R&D reinforcement taxes.
• Public-Private Partnerships: Co -finance models will be expanded, especially in biotechnology.

Risks and challenges: between ambition and reality

China seeks to balance its economic growth with a more sustainable and technologically advanced development model. However, the transition to an economy based on sophisticated innovation and industrial development faces challenges, such as the need to ensure greater security for long -term investments and overcome regulatory barriers.

Despite the optimism, analysts point out obstacles:

• Private Capital Dependence: Attract investors to high -risk projects (eg quantum) will require governmental guarantees.
• Bureaucratic bottlenecks: Decision centralization can slow the allocation of resources.
• Geopolitical pressure: Western sanctions to sectors such as semiconductors limit access to critical technologies.

Pan Gongsheng acknowledged that “the complex international environment requires accelerated self -sufficiency”, citing the plan Made in China 2025 as a reference.

A Global Chess Play

The measures reflect a double strategy: to revive domestic growth (the forecast of GDP to 2024 is 5%) and ensure global technological leadership. While the US invests $ 280 billion via chips Act, China responds with its own “Innovation Arsenal”.

Still, the combination of public policies aimed at innovation and financial reforms to facilitate the financing of the technological sector positions the country as one of the main global competitors in the race for state -of -the -art supremacy. The new guidelines reinforce China’s strategic vision to consolidate its leadership in key sectors for the future of the world economy.

As Zheng Shanjie warned: “Those who master the industries of the future will control the 21st century economy.” Success, however, will depend on balance state planning with market agility.

From information from the People’s Diary online