Chinese government establishes venture capital fund to aid civil-military integration

The state-owned China Aerospace Science and Industry Corporation (CASIC) has established a CNY1 billion (USD159 million) venture capital fund to bolster the civil-military integration (CMI) capabilities of companies based in Beijing.

China's Ministry of Industry and Information Technology (MIIT), the government agency charged with the development of the country's defence industry, said in a statement on 15 January that the venture capital fund was launched at the beginning of the year through a collaboration effort between CASIC, the Beijing Municipal Science & Technology Commission, and subsidiaries of the Shenzhen-based Guoxin Securities.

MIIT said the venture capital fund will promote private companies' involvement in CMI activities and, led by CASIC, "actively explore" the research and development (R&D) in a range of dual-technology fields including networked-enabled capabilities, cyber security, and communications.

MIIT added that funding generated through the fund will be used to "promote scientific and technological achievements and civil-military integration", as well as the "rapid growth" of small and medium-sized enterprises (SMEs) in Beijing.