China launches major state-backed fund for robotics and artificial intelligence

China’s National Development and Reform Commission has announced the creation of a long-term state-backed venture capital fund aimed at raising approximately USD 138 billion over 20 years. The fund will focus on robotics, artificial intelligence, and advanced technologies, with investment contributions from local governments and the private sector.

The initiative is designed to strengthen China’s technological leadership, as the country’s global share of industrial robot installations has risen from 20% to over 50% in the past decade. In 2023 alone, Chinese suppliers met 54% of domestic demand and 33% of global demand for industrial robots, with particularly strong market penetration in the electronics, machinery, and metalworking sectors.

The fund aligns with China’s 14th Five-Year Plan for the development of the robotics industry and the broader Vision 2035 strategy. Key priorities include integrating robotics with AI, smart manufacturing, and advanced components, with a growing focus on humanoid robots. According to Dietmar Ley, President of VDMA Robotics + Automation, Europe and the United States must respond decisively to remain competitive in this rapidly evolving sector.