Chinese Government Supports Tech Startups Amid Venture Capital Contraction

Key Takeaways

• The decline of venture capital activity in China has prompted Beijing to implement new financing mechanisms for tech startups.
• The government is deploying diverse support tools, including an RMB 500 billion tech financing program, SOE venture funds, and enterprise-finance matching platforms.
• China is also establishing mechanisms to address tech companies’ commercialization challenges and broaden access to financing.