On May 14, 2025, China announced a comprehensive plan to enhance financial support for science and technology innovation enterprises, aiming to bolster the nation's self-reliance in technology amid ongoing geopolitical tensions. The initiative, detailed in guidelines from seven government bodies—including the Ministry of Science and Technology and the People's Bank of China—targets key national science and technology programs and small to medium-sized tech businesses.

The plan includes promoting domestic and international public listings for qualified tech firms, expanding a pilot program involving financial asset investment companies to 18 cities and provinces, and allowing banks in these pilot areas to extend loan terms for tech-related mergers and acquisitions up to 10 years. These measures are part of China's broader strategy to stimulate domestic tech innovation and reduce reliance on foreign technologies.

This initiative builds upon previous efforts, such as the establishment of a state-backed venture capital guidance fund announced in March 2025. The fund aims to attract nearly 1 trillion yuan ($138 billion) over 20 years to support cutting-edge fields like artificial intelligence, quantum technology, and hydrogen energy storage. Zheng Shanjie, head of the National Development and Reform Commission, emphasized that the fund will focus on "hard technology" and long-term investment cycles with a higher tolerance for risk.

In May 2025, numerous Chinese financial institutions, including banks, brokerages, and private equity firms, launched plans to issue sci-tech innovation bonds. Over 100 firms are expected to participate, aiming to raise more than 300 billion yuan ($41.46 billion). The People's Bank of China supports this initiative by offering low-cost funding, and local governments will help cushion losses from defaults.

The recent guidelines also emphasize the development of a multi-level technology financial service ecosystem, involving governments at all levels, technology firms, financial institutions, venture capital funds, and third-party intermediary service agencies. Financial institutions are encouraged to leverage advanced technologies, including cloud computing, big data, and artificial intelligence, to enhance operational effectiveness and risk control capabilities.

These initiatives reflect China's strategic emphasis on technological self-reliance and its commitment to fostering innovation through enhanced financial support mechanisms. By promoting public listings and extending loan terms, the plan aims to stimulate domestic tech innovation and reduce reliance on foreign technologies. This approach is particularly significant amid ongoing geopolitical tensions, as it seeks to strengthen China's position in the global technology landscape.

The comprehensive plan underscores China's proactive approach to integrating financial mechanisms with technological development, aiming to create a robust ecosystem that supports innovation and economic growth.