China looks to raise an extra US$7.1 billion to support hi-tech manufacturing
- Advanced Manufacturing Industry Investment Fund was set up in 2016 to support ‘Made in China 2025’ plan
- Second phase funding target represents a 150 per cent increase on first round
A state-owned Chinese investment fund plans to make a further 50 billion yuan (US$7.1 billion) available to the country’s advanced manufacturing industries, according to an official media report.
The Advanced Manufacturing Industry Investment Fund (AMIIF) was set up in 2016 and raised 20 billion yuan at that time to support “Made in China 2025”, the government’s plan to upgrade its hi-tech industries to Western levels and reduce the country’s dependence on foreign technologies, such as advanced semiconductors.
Among the areas that received funding were industrial robotics, new-energy vehicles and rail transit equipment.
Now in its second phase, the funding target has grown to 50 billion yuan, China Securities Journal reported, citing a document released by the State Development & Investment Corporation (SDIC) on Saturday.
The extra money will support the transformation and upgrading of China’s manufacturing capabilities to the “mid-to-high end of the global value chain”, and promote innovation in the industry, the report said.
The primary sponsors of the AMIIF are the SDIC – the country’s largest state-owned investment firm – top economic planning agency the National Development and Reform Commission, Industrial and Commercial Bank of China, and the finance and industry ministries.
Although Beijing no longer refers to the Made in China 2025 plan in public, it remains committed to the development of key technologies and promoting innovation to achieve a high-quality manufacturing industry.
China has more than 1,900 “government guidance funds” to support investment in the tech sector, including the 139 billion yuan (US$19.7 billion) National Integrated Circuit Industry Investment Fund.
Besides centrally managed funds, at least 20 local governments have set up similar investment vehicles for the semiconductor sector alone, with a combined value of about 600 billion yuan (US$85.2 billion).
