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

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Visitors learn about a dual-motor drive system for a new energy vehicle at an exhibition on the sidelines of the 2024 World Power Battery Conference in Yibin. Photo: Xinhua

Published: 8:00pm, 6 Sep 2024

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.

The surge falls in line with President Xi Jinping’s call to cultivate “new quality productive forces”, a frequently mentioned national strategy designed to spur growth through domestic innovation and build tech self-reliance to mitigate the impact of US-led tech containment amid heightened geopolitical tensions.

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, Renmin University