China is planning on going big in the field of hard technology. State broadcaster CCTV reported that China on Friday launched three venture capital funds to invest in “hard technology” areas.
The report also says that the capital contribution plans for the funds have been finalized, each with more than 50 billion yuan ($7.14 billion).
The fund was jointly initiatedby the National Development and Reform Commission (NDRC) and the Ministry of Finance, with three regional sub-funds established in the Beijing–Tianjin–Hebei region, the Yangtze River Delta, and the Guangdong–Hong Kong–Macao Greater Bay Area.
According to Bai Jingyu, an official with the NDRC, the fund aims to use central government capital to attract participation from local governments, state-owned enterprises, financial institutions and private investors. Speaking at a press conference on Friday, Bai said the initiative will increase support for strategic emerging and future industries and accelerate the development of new productive forces.
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“Hard technology” typically refers to areas that are capital-intensive, research-heavy, and strategically important, such as semiconductors, advanced manufacturing, artificial intelligence, new materials, biotechnology, aerospace, and high-end equipment.
Unlike consumer internet or platform-based businesses, these sectors often require longer investment horizons and sustained policy support before commercial returns are realized. By creating large, state-backed venture capital funds, China aims to help bridge the funding gap that many early-stage and growth-stage hard-tech firms face.
According to Reuters, the funds will primarily invest in early-stage startups and the targets should be valued at less than 500 million yuan, the official said, adding that no single investment would amount to more than 50 million yuan.
In recent years, Chinese policymakers have emphasized the importance of “technological self-reliance,” particularly in core areas such as chips and industrial software. Venture capital funds with substantial backing can play a key role by supporting startups through lengthy R&D cycles, helping them scale production, and connecting them with industrial partners.
The funds’ expected targets include firms focused on integrated circuits, quantum technology, biomedicine, brain-computer interfaces, aerospace and other key hard technologies.
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The scale of the funds—each supposedly surpassing 50 billion yuan—also reflects growing confidence in the role of venture investment as a policy tool. Large fund sizes may allow for diversified portfolios across multiple sub-sectors while still enabling sizable investments in promising companies. They may also help crowd in private capital by reducing perceived risks and signaling official support for targeted industries.
At the same time, experts note that the effectiveness of these funds will depend on professional management, clear investment criteria, and market-oriented decision-making. Simply allocating capital is not enough; successful outcomes are expected to require strong governance and the ability to identify commercially viable technologies.
The launch of the three venture capital funds highlights China’s determination to accelerate breakthroughs in hard technology. As global competition in advanced industries intensifies, such initiatives are likely to play an increasingly important role in shaping the country’s innovation landscape and long-term economic growth.
While the success of this strategy will ultimately depend on effective execution, governance, and market responsiveness, the initiative highlights an effort to create an ecosystem where high-risk, high-impact innovation can flourish. Over time, consistent support for hard technology could strengthen industrial capabilities, enhance supply-chain security, and foster new engines of economic growth. More broadly, it illustrates how targeted financial mechanisms are increasingly being used as tools to steer national development and secure a competitive position in emerging technologies.