Beijing City Government to Create a Dedicated Tech Investment Arm

A Beijing based investment firm has been in negotiations with potential investors to try and raise over 10 billion Yuan for its very first fund. The fund is largely aimed at investments into cutting edge technology, insiders revealed.

The investment firm goes by the name of Beijing Innovation Industry Investment Co, and it is backed by the Beijing local city government. Although, there has been no conclusive statement from the city government as of yet, the secretive efforts by the investment firm to raise huge amounts of capital point out the city’s ambitions to technologically catch up with the rest of the cities across mainland China, especially Shenzhen. The Shenzhen region has been most notable for its technology incorporation across various facets of its urban life. From infrastructure to industry to connectivity and entertainment options, Shenzhen seems to be doing better than the rest.

The Chinese ambition to be a world leader in the technological domain is no secret. China has been keen on enhancing its technological sector by both promoting technological incorporation across most areas of its state structure as well as by funding and encouraging research and development into futuristic technologies such as robotics, AI, etc.

The trade impasse between China and the US has only further added fuel to this ambition. China largely relied on importing technology which mainly came from the US as it currently leads the world in the domain. China’s state council developed a 200 billion Yuan fund to invest in modern technologies back in 2016. The fund is being financed by the financially strong State-Owned Entities.

So it is not surprising that the local Beijing government is trying to create a similar fund; it is only just following in the footsteps of the central government.

Reportedly, Beijing innovation seeks direct equity investments across a number of technology-driven sectors; from integrated circuits and information technology to autonomous vehicles and new synthetic material.

Beijing City has established itself as a major tech hub in the country over the years. It has been home to firms such as ByteDance Technology, which is easily one of the world’s most valuable tech startups. Beijing is also home to another E-commerce giant, JD.com. Despite being a vibrant startup ecosystem for the tech sector, it lacked a dedicated investment body under the local government to fund tech deals. This seems like a move toward that end.