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The Industrial and Commercial Bank of China (ICBC), which is currently the world’s largest commercial lender by assets, has introduced a fund of 80 billion yuan ($11.04 billion) called the Technology and Innovation Fund to strengthen the backbone of the private economy.
The bulk of the money is plotted to “intelligent technology” fields, such as semiconductors and advanced manufacturing, being an alternative to “soft” technology sectors such as internet services.
The chairman of ICBC, Lin Liao, stressed that the bank would take the proactive approach of turning supportive policies from the central government into practical actions that will benefit private companies. He also mentioned the fund as “patient capital,” which signified the direction of the bank to long-term growth rather than immediate profits.
This activity is consistent with China’s new policy objectives for 2025, which were spoken of at the annual parliamentary meeting last week. The country wants to promote consumption and technological progress and overcome the geopolitical tensions arising from the United States. Reflective of these aims, China, in its state planner, has just recently proclaimed their intentions with the implementation of a government-backed fund prototype to above 1 trillion yuan facilitated by social capital being used to foster technology startups.
ICBC’s fund formation is a proof of China’s strategic targeting of the technology industry with its major focus on semiconductors and advanced manufacturing. China intends to foster its autonomy on the world stage while preserving maximal infrastructure by pouring countless resources into these critical areas.
The concentration on “hard technology” is indicative of a conscious transition to the lines of business that are the foundation of the infrastructural system and national security. Chips are still the backbone of a broad range of electronic devices, and leading the charge in this field is the most important thing that can be achieved in technological sovereignty.
The fund that ICBC has referred to should be regarded as the patient capital. That ICBC’s approach is a strategic move to help modernise through long-term nurturing of such prototype characters is highlighted. This behavioural view is in line with the importance of long-term constant investment and development in areas such as semiconductors and advanced manufacturing to reach breakthroughs.
This statement can better be understood if we view the fact that China has to deal with unchecked waters all over the world, and this is especially seen in its relationship with the US. By exclusively focusing on the development of its domestic technology, China plans to eliminate foreign reliance and also strengthen its world supply chain status.
The proposed government-supported fund to garner 1 trillion yuan presents an additional example of China’s dedication to creating a fertile environment for technology startups. The fund is going to create new jobs and bring in more businesses, and as a direct result, the entire new technology industry will come into existence.
To sum up, the technology and innovation fund launched by ICBC of $11 billion reveals a very major step that China has undertaken to improve its technological infrastructure. China is aiming at getting outstanding technological development and leading competitive edge at the global level through the concentration on essential areas and the application of the long-term approach to investment.
