China’s State Venture Capital System Driving Tech Advancement, Analysis Shows
China’s technological advancement stems from a sophisticated state venture capital system rather than traditional subsidies, according to new analysis. Government guidance funds have deployed approximately €480bn to shape innovation markets from within through equity ownership in strategic sectors.
State Venture Capital Ecosystem
China is closing the technology gap with Western nations through a sophisticated system of state-backed venture capital rather than traditional subsidies, according to research findings highlighted in recent reports. Analysis suggests China’s innovation drive is built on a vast, equity-based financial architecture centered on “government guidance funds” (GGFs) that have deployed approximately €480bn in assets.
