China's Hi-Tech State Fund Surpasses USD$8 Billion in Pursuit of Technological Self-Sufficiency

[Edited] In a bid for technological self-sufficiency, China's National Fund for Technology Transfer and Commercialisation (NFTTC) has reached a staggering 62.4 billion yuan (US$8.7 billion), according to state media reports.

Credits : AP Photo

Launched in 2014, the NFTTC aims to transform research results into viable business ventures, and its growth reflects Beijing's commitment to a top-down "whole-country" approach.

By the end of 2022, the NFTTC had established 36 sub-funds, injecting nearly 36 billion yuan into 616 enterprises. It has also played a crucial role in turning 974 scientific and technological achievements into profit-oriented projects. The fund, supported by the Ministry of Science and Technology and the Ministry of Finance, assists national and local governments as well as public institutions in commercializing their new technologies, products, materials, and devices.

The NFTTC collaborates with various institutional investors, including private equity funds and government-backed funds, to make investments. Guidelines published on its official website stipulate that the fund must maintain its total investments in all sub-funds between 20 to 30 percent. Additionally, it is prohibited from being a major shareholder in any sub-fund. The primary focus of investment is directed towards China's hi-tech sectors, such as digital information, biomedicine, aerospace, and new materials.

Credits : EPA-EFE/Xinhua

China has long relied on state-level financing to bolster major industries, and this effort has become increasingly urgent as the country seeks to reduce its dependence on foreign technology amidst escalating rivalry with the United States.

Notably, the China Integrated Circuit Industry Investment Fund, also known as the Big Fund, was established in 2014 to support the nation's semiconductor industry. However, the fund faced a corruption scandal last year, leading to investigations into several of its executives.

The NFTTC made its largest capital injection in December 2021 when it established a sub-fund in collaboration with the governments of Guangdong province, Hubei province, Chengdu city, and various financial institutions. This strategic move further solidifies China's commitment to achieving technological self-sufficiency and reducing reliance on foreign technology.

As China continues to invest heavily in its hi-tech sectors, the NFTTC's growth highlights the country's determination to become a global leader in technology. By fostering innovation and commercialization of scientific achievements, China aims to strengthen its domestic industries and secure its position in the global tech landscape.

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• China's National Fund for Technology Transfer and Commercialisation (NFTTC) has reached 62.4 billion yuan ($8.7 billion) in funding.

• The NFTTC supports the commercialization of new technologies and scientific achievements.

• The fund focuses on China's hi-tech sectors, including digital information, biomedicine, aerospace, and new materials.

Source : SCMP