China Pumps Tens Of Billions Into Key Industry Amid Tech industry War With US

June 8, 2024

China Pumps Tens Of Billions Into Key Industry Amid Tech War With US

The Chinese Communist Party has launched a $47.5 billion state-backed investment fund to strategically boost the semiconductor industry in competition with the U.S., Reuters reported Monday.

The 344 billion yuan investment is the biggest of three funds that have been established, with the first being created in 2014, providing 138.7 billion yuan in capital, and the second in 2019, providing 204 billion yuan, according to Reuters. China is subsidizing its semiconductor industry in a bid to compete with the U.S. in the manufacturing of the technology, with chips showing good potential in both military and consumer aspects.

The newest investment by China will focus on boosting the country’s equipment for chip manufacturing, which the U.S. currently has the upper hand in, according to Reuters. Seventeen Chinese entities are listed as investors in what has been dubbed the “Big Fund,” with the top two being the country’s finance ministry and the China Development Bank Capital.