China Pumps Tens of Billions Into Key Industry Amid Tech War with U.S.

Xi Jinping

The Chinese Communist Party has launched a $47.5 billion state-backed investment fund to strategically boost the semiconductor industry in competition with the U.S., Reuters reported Monday.

The 344 billion yuan investment is the biggest of three funds that have been established, with the first being created in 2014, providing 138.7 billion yuan in capital, and the second in 2019, providing 204 billion yuan, according to Reuters. China is subsidizing its semiconductor industry in a bid to compete with the U.S. in the manufacturing of the technology, with chips showing good potential in both military and consumer aspects.

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