China will establish a government-backed fund to mobilize 1 trillion yuan (US$138 billion) for technology startups.

Zheng Shanjie, head of the National Development and Reform Commission, announced that the “national venture capital guidance fund” will operate as a public-private partnership.

It will focus on semiconductors, renewable energy, AI, and quantum technology, using market-driven approaches with long-term investment horizons.

The fund will have a higher risk tolerance to support seed-stage and startup tech companies. It will also explore emerging fields like hydrogen energy storage.

This initiative aligns with China’s broader strategy to boost AI applications, increase venture capital investments, and strengthen technological self-reliance.