China’s state-owned firms splash 1 trillion yuan on emerging hi-tech industries
Funds have been directed towards hi-tech industries, such as new information technology, artificial intelligence, aerospace and new energy
China’s state-owned enterprises (SOEs) funnelled more than 1 trillion yuan (US$141 billion) into strategic emerging hi-tech industries in the first seven months of the year amid Beijing’s push to support emerging industries in the face of US-led tech containment efforts.
The State-owned Assets Supervision and Administration Commission (Sasac), which oversees 97 large industrial conglomerates, told the state-backed Xinhua News Agency on Thursday that investment in cutting-edge sectors had risen by 24 per cent, compared with the same period in 2023, accounting for 38 per cent of total investment.
According to Sasac, most of the funds have been directed towards hi-tech industries, such as new information technology, artificial intelligence, aerospace, new energy, new materials, advanced equipment manufacturing, biopharmaceuticals and quantum technology.
“By increasing their investments, the central SOEs aim to optimise and upgrade the industrial structure, while fostering new drivers of economic growth,” the commission told Xinhua.
This is not just about spending money; anyone can do that
Zhao Xijun, a finance professor with Renmin University in Beijing, said the wave of investment fits with the role identified by Beijing for central SOEs to focus on weak links and strategic sectors that are vital to the nation’s stability and public welfare, which is especially crucial amid the US-led tech containment.
