An illustration of using AI applications on a mobile phone. Photo: VCG

China will soon establish a national venture capital guidance fund in a bid to help innovative enterprises grow stronger,MKsport more competitive, and larger, Zheng Shanjie, head of the National Development and Reform Commission (NDRC), said at a press conference during the ongoing two sessions on Thursday.

Zheng made the remarks while elaborating the top economic planner's next steps to implement the tasks outlined in the Government Work Report submitted to the National People's Congress for deliberation on Wednesday.

Zheng stressed that efforts will be made to nurture new growth drivers while upgrading traditional engines so as to accelerate the building of a modernized industrial system.

The fund is expected to attract local government and private investment of nearly 1 trillion yuan ($138.15 billion), and will focus on cutting-edge areas including artificial intelligence (AI), quantum technology, hydrogen energy, and energy storage, according to a CCTV News report on Thursday.

The report said a market approach will be adopted to invest in start-ups and early-stage enterprises, while also giving consideration to small, medium and micro-sized enterprises in their early to mid-growth stages, in order to support original and disruptive innovations, facilitate core technological breakthroughs, and foster the development of strategic emerging and future industries.

According to this year's Government Work Report, the country will establish a mechanism to increase funding for future industries, including biomanufacturing, quantum technology, embodied AI, and 6G technology.

Under the AI Plus initiative, the country will work to effectively combine digital technologies with China's manufacturing and market strengths, according to the work report. 

According to CCTV News, the fund will exist for 20 years, making it longer lasting than typical equity funds.

The new fund is designed to address common funding shortages faced by tech firms in their early stages, effectively leverage venture capital to support technological innovation, accelerate the commercialization of major sci-tech achievements, enhance technological self-reliance, and develop new quality productive forces, a spokesperson from the NDRC said.

A growing number of products are now equipped with Chinese-made chips. China's AI models are vying for dominance, with emerging innovations proving to be game-changers. The density of industrial robots has significantly increased, humanoid robots are advancing in practical applications, and a wave of internationally competitive domestically developed drugs is entering the market. This demonstrates that any attempt to suppress and contain China will only accelerate its pace of independent innovation, Zheng said.

China's vibrant sci-tech innovation activities has drawn widespread attention from domestic and foreign investors. "We welcome international investment in Chinese tech firms but oppose instrumentalizing and politicizing market investment behavior or erecting improper investment barriers," Pan Gongsheng, governor of the People's Bank of China, said at the same conference on Thursday.