China has announced a $12.5bn investment in a venture capital fund, as the country attempts to boost its investments in infrastructure and innovation.
The deal is part of a wider strategy to boost investment in China, including plans to boost the country’s manufacturing sector.
“Investment and technology in China are of strategic importance to the country, and we believe this will make a positive contribution to the national development and economic growth,” China Investment Corporation (CIC) CEO Xu Xinjin said in a statement.
“This investment is aimed at building new technologies and services in the country that will help us meet the challenges of the future.”
The announcement comes at a time of increased pressure on the Chinese government to increase investments in the Chinese economy, which has grown by an average of 6.6% a year since 2014.
Beijing has been investing heavily in infrastructure projects and infrastructure companies, while it has been targeting the expansion of the country in areas such as renewable energy, healthcare, and information technology.
In the past, China has been slow to announce significant investment projects.
It has been keen to keep its investment under wraps for security reasons.
In 2018, the government released the countrys biggest budget, and in 2019, it announced a new policy of a $400bn stimulus package for China, with some $100bn earmarked for infrastructure and the rest for infrastructure projects.
In 2019, the Chinese stock market hit a record high, rising 7.8%.