China to refocus government investment funds on strategic sectors | investingLive

China to Refocus Government Investment Funds on Strategic Sectors

China is moving to strengthen coordination between national and local government investment funds, aiming to better support the country’s strategic development goals. The National Development and Reform Commission (NDRC) has released draft guidelines for public consultation on how such funds should be allocated and evaluated.

The NDRC emphasized that government-backed venture capital should concentrate on fostering “new productive forces” and addressing technological bottlenecks in critical sectors. National funds will be encouraged to support industries listed in official strategic catalogs, including those in the Catalogue of Industries for Encouraging Foreign Investment.

Priority will be given to upgrading modern strategic industries, with the broader goal of aligning public investment more closely with national economic objectives. The proposed reforms reflect Beijing’s efforts to direct capital toward innovation, industrial modernization, and high-quality growth.