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TMTPOST -- China is accelerating its push into the artificial intelligence (AI) race, with a new national fund marking a pivotal shift from a focus on semiconductor support to full-scale engagement across the entire AI value chain.

At a recent symposium in Shenzhen, Zhang Jianhua, Deputy Director of the Planning Department at the Ministry of Industry and Information Technology, announced the formal establishment of the National Artificial Intelligence Fund.

With a total scale of 60.06 billion yuan and a 13-year investment horizon, the fund aims to "invest early, invest small, and invest in cutting-edge areas," supporting key segments such as computing power, algorithms, data, and enabling applications. Zhang emphasized the fund's role as a form of "national-level patient capital," positioned to drive future leadership in AI through long-term, strategic investments.

The fund is based in Shanghai's Xuhui District and is managed by Guozhi Investment. The sole limited partner is the National Integrated Circuit Industry Investment Fund Phase III—better known as the "National Big Fund Phase III"—which injected the full 60 billion yuan.

Established in May 2024, the National Big Fund Phase III is backed by 19 major state stakeholders, including the Ministry of Finance, six large state-owned banks, and other central institutions, with total capital of 344 billion yuan—making it the largest semiconductor-focused investment fund in Chinese history.

This strategic pivot comes as China places growing emphasis on "embodied intelligence," which for the first time appeared in this year's central government work report as a priority for future industrial development.

According to Zhang, the new fund will closely track breakthroughs in embodied intelligence and align investment strategies with commercialization progress and financing demand in the sector.

Major Chinese tech hubs are already responding to the national call. On February 28, Beijing announced a 100-billion-yuan, 15-year fund targeting AI and robotics, part of a broader action plan to develop future industries. As of March 2025, Beijing is home to around 2,400 AI-related companies—roughly 40% of China's total—including 36 unicorns. In 2024, Beijing's core AI sector surpassed 300 billion yuan in output, and the city plans to deploy 10,000 embodied robots over the next three years.

Meanwhile, Shenzhen is also ramping up efforts. On February 23, officials unveiled plans for a 10-billion-yuan AI and robotics fund to solidify its position as "China's Hard Technology Laboratory." In parallel, Guangdong province has committed over 23 billion yuan through various government funds and recently released a list of 30 AI+ pilot scenarios across industries like manufacturing, healthcare, education, and security to accelerate industry integration.

Globally, AI is not only a tech frontier but also a contest of industrial sovereignty. The U.S. is reinforcing its semiconductor edge through the CHIPS Act, while the EU is advancing regulatory frameworks via the Artificial Intelligence Act. Against this backdrop, China's National AI Fund signals a strategic bid to become not just a player, but a rule-maker in the global AI order.

This long-term investment approach represents more than economic ambition—it aims to lay the foundation for a restructured industrial landscape and a future-ready society.

(Note: 1 USD equals about 7.25 yuan)