China sets up 60b yuan national AI fund to accelerate tech innovation

China's Ministry of Industry and Information Technology and the Ministry of Finance have jointly established a 60 billion yuan ($8.2 billion) national artificial intelligence fund to fast-track strategic investments in AI infrastructure and cutting-edge technologies, a senior official said on Friday.

The move underscores China's push to solidify its global leadership in AI amid intensifying international competition, experts said.

Xie Shaofeng, chief engineer of the Ministry of Industry and Information Technology, said at a news conference that the ministry has also coordinated with provincial governments to develop 11 national AI innovation pilot zones.

Meanwhile, central and local authorities have jointly built specialized manufacturing innovation centers for embodied AI robots, humanoid robots, and other next-gen technologies to drive the development of industrial clusters, Xie added.

China has also cultivated more than 40 national-level "little giant" firms, or specialized, high-tech SMEs focused on AI core technologies, he added.

"China's systematic approach — combining state funding, standardization, and SME empowerment — positions it to dominate not just AI application but also foundational innovation," said Li Wei, a tech policy analyst at Sinolink Securities.