China to Increase Financing for Small Technology Companies

China has published a new five-year plan to support small and medium-sized companies. The main focus will be on technology companies and sectors where Beijing is seeking to expand local production and research activities.

The plan was jointly prepared by ten state agencies. Regional authorities will be tasked with involving small companies in national scientific and technological programs. Part of the funds allocated from state funds will be used for companies at the early stages of development.

Artificial intelligence, robotics, quantum technologies, new energy, and advanced materials have been identified as priority areas.

China aims to increase the number of specialized small technology companies, so-called "little giants," to 22,000 by 2030. Plans also include increasing bank financing and simplifying companies' access to bond and equity markets.

Beijing considers these businesses an important part of technological independence, particularly amid competition with the US.

Source: Reuters