Understanding Chinese Government Guidance Funds Image

Analysis

Understanding Chinese Government Guidance Funds

An Analysis of Chinese-Language Sources

Ngor Luong

Zachary Arnold

Ben Murphy

March 2021

China’s government is using public-private investment funds, known as guidance funds, to deploy massive amounts of capital in support of strategic and emerging technologies, including artificial intelligence. Drawing exclusively on Chinese-langauge sources, this report explores how guidance funds raise and deploy capital, manage their investment, and interact with public and private actors. The guidance fund model is no silver bullet, but it has many advantages over traditional industrial policy mechanisms.

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