ICBC announced the launch of an 80 billion yuan ($11.04 billion) technology and innovation fund reflecting China’s intensified push toward self-reliance in critical industries amid ongoing geopolitical tensions, particularly with the U.S.
By focusing on “hard technology” sectors like semiconductors and advanced manufacturing rather than internet services, the fund aligns with Beijing’s broader strategic goal of reducing dependence on foreign technology and strengthening its domestic supply chain.
This move is particularly significant as it comes just days after China outlined its key economic priorities for 2025, emphasizing technological breakthroughs and economic resilience. The fund also complements a larger government-backed initiative to mobilize 1 trillion yuan from social capital for tech startups, signaling a concerted effort to boost private sector innovation while maintaining state oversight.
The characterization of the fund as “patient capital” suggests a long-term investment approach rather than a rush for immediate returns. This is crucial in sectors like semiconductor manufacturing, where R&D and commercialization require sustained financial support. By providing stable funding, ICBC aims to create a more supportive environment for private enterprises developing core technologies that are vital to China’s economic security, Reuters news report said.
The move underscores the Chinese government’s reliance on state-owned financial institutions to direct capital toward strategic industries. It also highlights the challenges private companies face in securing funding independently, given the shifting regulatory landscape and economic uncertainties.
