The Chinese mainland is taking bold strides to supercharge its sci-tech innovation through enhanced venture capital (VC) investments. In a recent announcement by the National Development and Reform Commission, new measures aim to expand capital sources, refine exit strategies, and create a more favorable market environment for VC ventures.
Li Chunlin, deputy director of the Commission, highlighted that fostering VC growth is pivotal for creating a virtuous cycle among technology, industry, and finance. VC's hallmark traits—early-stage investment, small-scale funding, and focus on hard technologies—are essential for supporting the rapid expansion of \"little giants\" and unicorn companies.
\"Little giants\" refer to the Chinese mainland's cutting-edge SMEs in the manufacturing sector, specializing in niche markets with advanced technologies. Currently, the mainland boasts 12,000 of these dynamic enterprises and 369 unicorn startups valued over $1 billion.
The new measures seek to attract long-term investments from sources like insurance funds, encourage asset managers to increase their VC portfolios, and diversify VC fund types. Additionally, a streamlined mechanism will connect VCs with high-quality, innovative projects aligned with national development goals.
Supporting patent industrialization, implementing tax incentives for VC enterprises, and adopting tailored regulations will further bolster the ecosystem. The Chinese mainland also plans to carefully open up VC investments, broaden exit channels, and refine exit policies to ensure market stability and vitality.
By fostering a robust VC landscape, the Chinese mainland aims to maintain its trajectory of technological advancement and economic growth, making it a fertile ground for startups and established enterprises alike.
Reference(s):
cgtn.com
