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

China's National Fund for Technology Transfer and Commercialisation (NFTTC) reaches 62.4 billion yuan (USD$8.7 billion) to drive technological self-reliance through research-to-business initiatives, as Beijing adopts a "whole-country" approach.

Credits : AP Photo

A Chinese state fund launched in 2014 to foster research-to-business ventures has amassed 62.4 billion yuan ($8.7 billion), supporting over 600 enterprises and transforming 974 scientific achievements into profitable projects by the end of 2022. Led by the Ministry of Science and Technology and the Ministry of Finance, the NFTTC partners with private equity funds and local government-backed funds to promote the commercialisation of new technologies across various sectors, including digital information, biomedicine, aerospace and new materials.

Credits : EPA-EFE/Xinhua

The NFTTC's key investment direction focuses on China's hi-tech sectors, as the nation seeks to reduce reliance on foreign technology amidst escalating competition with the US. Notably, the fund ensures its total investments in all sub-funds remain between 20 to 30 percent and refrains from becoming a major shareholder in any sub-fund.

In the past, China has utilised state-level financing to bolster critical industries. With the intensifying rivalry with the US, efforts to achieve technological self-sufficiency have become more urgent.

The NFTTC's largest capital injection was recorded in December 2021 when it partnered with southern Guangdong province, central Hubei province, southwestern Chengdu city and several financial institutions to establish a sub-fund.

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• China's hi-tech state fund, NFTTC, surpasses $8.7 billion to drive technological self-sufficiency.

• By end of 2022, NFTTC supported 616 enterprises and transformed 974 scientific achievements into profit-oriented projects.

• Fund focuses on hi-tech sectors like digital information, biomedicine, aerospace and new materials.

• State fund collaborates with private equity funds and local government-backed funds.

• China uses state-level financing to reduce reliance on foreign technology amid increasing US rivalry.

Source : SCMP