Beijing Launches $8.2 Billion AI Fund to Counter US Chip Curbs
China establishes a massive 60 billion yuan AI investment fund in Shanghai just days after the US expands semiconductor export restrictions. The state-backed venture highlights Beijing's push to build domestic AI capabilities despite tightening trade controls.
China establishes a new National AI Industry Investment fund with an initial capital of 60 billion yuan, or US$8.2 billion. State-backed Guozhi Investment and the China Integrated Circuit Industry Investment Fund Phase III launch this joint venture in Shanghai to focus on general equity investment and asset management.
This massive financial move comes just days after the US Department of Commerce adds over two dozen Chinese entities to its trade blacklist. These newly blacklisted companies face strict barriers to purchasing goods and services from American technology suppliers without rarely granted licenses.
The new fund reflects Beijing's determination to advance its national AI capabilities despite escalating tech restrictions from Washington. Analysts at China International Capital Corp project the Chinese AI market to reach a massive 5.6 trillion yuan by the year 2030 as the central government continues to support the sector with favorable policies.