China has established a new artificial intelligence (AI) investment fund with an initial capital of 60bn yuan ($8.2bn), reported South China Morning Post.
This move comes shortly after the US intensified export controls on advanced semiconductors and added more Chinese companies to its trade blacklist.
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China also plans to launch an inquiry into the US government’s subsidies of its semiconductor industries.
The fund, named the National AI Industry Investment Fund, was incorporated in Shanghai.
It is a joint venture between state-backed Guozhi Investment (Shanghai) private equity fund management and the China Integrated Circuit Industry Investment Fund (CICF) Phase III.
Citing local business registry service Qcc.com, the fund’s business scope includes general equity investment and asset management, though specific details were not provided.
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By GlobalDataAI has become a national priority for China amidst ongoing tensions between Beijing and Washington.
China’s AI market is projected to reach 5.6trn yuan by 2030, according to China International Capital Corp.
The US Department of Commerce recently added over two dozen Chinese entities to its Entity List, accusing them of aiding Beijing’s military advancements.
Companies on this list are prohibited from purchasing goods or services from US tech suppliers without a licence, which is typically denied.
Among the blacklisted companies are Chinese start-up Zhipu AI and chip designer Sophgo.
Zhipu AI expressed strong disagreement with the US sanction, citing a lack of factual basis. Sophgo has denied any wrongdoing.
Prior to the blacklist announcement, the outgoing Biden administration introduced new restrictions that limit AI chip and technology exports to most countries.
These rules completely block exports to China, Russia, Iran, and North Korea, while allowing nearly unlimited access for Washington’s closest allies.
NVIDIA criticised the new rules as a “sweeping overreach” that would restrict technology already available in mainstream consumer hardware.
The third phase of the CICF, also known as the “Big Fund”, was 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.
