China has announced a state-backed venture capital fund to accelerate innovation in AI, quantum technology, and hydrogen energy storage. The fund, expected to raise nearly 1 trillion yuan ($138 billion) over 20 years, will attract investments from local governments and the private sector, according to Zheng Shanjie, chairman of the National Development and Reform Commission.

Despite US restrictions on high-tech components, China has made significant advancements in AI and chip development. DeepSeek’s AI model, which rivals OpenAI’s GPT-4 at a lower cost, demonstrates China’s growing self-reliance in technology.

Premier Li Qiang has pledged to support emerging industries such as bio-manufacturing, embodied AI, and 6G technology. Additionally, the government is prioritizing domestic consumption, announcing a special action plan to boost spending. The budget deficit has been raised to 4% of GDP, and the government will issue 6.2 trillion yuan ($855 billion) in bonds to support infrastructure and housing.

With rising US tariffs, China aims to strengthen private sector confidence through the Private Economy Promotion Law, ensuring legal protection and fair competition for businesses.