(Yicai) March 6 -- China will create a national-level venture capital guidance fund aimed at channeling nearly CNY1 trillion (USD138 billion) into innovative tech firms, according to officials from the National Development and Reform Commission.

Zheng Shanjie, director of the NDRC, revealed the initiative today at the Two Sessions, China’s annual legislative and political consultative meetings, which run from March 4 to 11.

The new fund aims to address the chronic funding shortages faced by tech startups, an NDRC official told China Central Television News. The funds will be sourced from local governments and private capital, and will help accelerate the transformation of major scientific achievements into real productivity, as well as fostering new quality productive forces.

The fund will operate for up to 20 years and target frontier fields such as artificial intelligence, quantum technology, and hydrogen energy. It will focus on early-stage investments in seed and startup companies to support original technological innovation and breakthroughs in core technologies.

The fund will also cover emerging industries such as bio-manufacturing, embodied AI, and sixth-generation technology, according to the government’s annual work report, which was delivered to China’s parliament yesterday.

China plans to establish a growth mechanism for future industries, the work report said. It also proposed a tiered cultivation system for innovative firms, unicorns, and gazelle enterprises to strengthen the country’s tech ecosystem.

Gazelles are young, fast-growing startups that increase their revenue by at least 20 percent a year and have base revenue of at least USD100,000. Unicorns are usually privately held startups worth at least USD1 billion and set up no more than 10 years ago.

Editor: Tom Litting