China has established a new artificial intelligence (AI) investment fund with an initial capital of 60 billion yuan ($8.2 billion). South China Morning Mail.
The move comes shortly after the US stepped up export controls on advanced semiconductors and added more Chinese companies to its trade blacklist.
China also plans to launch an investigation into US government subsidies to its semiconductor industries.
The fund, called the National AI Industry Investment Fund, was founded in Shanghai.
It is a joint venture between the state-backed private equity fund management of Guozhi Investment (Shanghai) and the China Integrated Circuit Industry Investment Fund (CICF) Phase III.
Citing local company registration service Qcc.com, the fund’s business includes general equity investing and asset management, although no specific details were provided.
AI has become a national priority for China amid ongoing tensions between Beijing and Washington.
China’s AI market is expected to reach 5.6 trillion yuan by 2030 China International Capital Corp.
The US Department of Commerce recently added more than two dozen Chinese entities to its Entity List, accusing them of supporting Beijing’s military advances.
Companies on this list are prohibited from purchasing goods or services from U.S. technology suppliers without a permit, which is generally denied.
Among the companies on the blacklist are Chinese start-up Zhipu AI and chip designer Sophgo.
Zhipu AI strongly disagreed with the US sanction, citing a lack of factual basis. Sophgo has denied any wrongdoing.
Ahead of the blacklist announcement, the outgoing Biden administration introduced new restrictions limiting the export of AI chips and technology to most countries.
These rules completely block exports to China, Russia, Iran and North Korea, while allowing virtually unrestricted access to Washington’s closest allies.
NVIDIA criticized the new rules as a “major overreach” that would limit technology already available in mainstream consumer hardware.
The third phase of the CICF, also known as the ‘Big Fund’, launched in May 2024.
It represents China’s largest ever chip investment fund, with 19 equity investors led by the Ministry of Finance, China Development Bank Capital and Shanghai Guosheng Group.
“China Launches $8.2 Billion AI Investment Fund as US Tightens Trade Controls” was originally created and published by Verdict, a brand owned by GlobalData.
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