China has launched a national venture capital guidance fund aimed at accelerating innovation led growth and supporting future-oriented industries. The initiative brings together the National Development and Reform Commission and the Ministry of Finance to channel long term capital into early stage innovation.
The fund is designed to mobilize patient capital and reduce financing gaps for original and disruptive technologies. Its potential scale could reach 1 trillion yuan, with 100 billion yuan provided as initial central government capital. Authorities have structured the fund across three layers to improve coordination and risk sharing.
How the Fund is Structured
- A national fund management company oversees strategy
- Regional funds operate at the local level
- Sub funds invest directly in enterprises and projects
Three Regional Funds are Already in Place Across Major Innovation Hubs:
- Beijing Tianjin Hebei region
- Yangtze River Delta
- Guangdong Hong Kong Macao Greater Bay Area
At least 70 percent of capital will target seed stage and early stage companies. The investment approach prioritizes early stage, small scale, long term funding with a strong focus on hard technology.
Key Sectors in Focus
| Priority industries |
| Integrated circuits |
| Artificial intelligence |
| Quantum technology |
| Biomedicine |
| Aerospace |
| Brain computer interfaces |
| Future energy |
China’s push to back early stage innovation is already showing up in real world AI and robotics deployments. Government supported capital is helping move advanced technologies beyond research into operational use, including strategic applications of embodied AI. A recent example shows China deploying humanoid robots at the Vietnam border, highlighting how the country is applying artificial intelligence and robotics in sensitive, future oriented scenarios exactly the kind of long horizon, high risk innovation this national venture capital guidance fund aims to support..
The fund will operate over a 20 year lifespan, covering both investment and exit phases. It also aligns with China’s new nationwide rules for government investment funds, which emphasize support for national strategies, core technologies, and modern industrial systems as the country prepares its 15th Five-Year Plan for 2026 to 2030.
