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China Central Bank Announces $70 Billion Loans For Tech Sector

Chinese policymakers have doubled down on Xi Jinping’s new mantra of unleashing “new productive forces” and stepped up investment in cutting-edge technology

An illustration to depict artificial intelligence and related technology development by China
The American intelligence community, think tanks and academics are increasingly concerned about risks posed by foreign bad actors gaining access to advanced AI capabilities. Photo: Freepik; edited by Aarushi Agrawal


China’s central bank has announced plans to set up a 500 billion yuan ($70 billion) re-lending programme to back the country’s science and technology industries.

The programme will offer loans via 21 banks to small and midsize technology companies at an interest rate of 1.75%, the People’s Bank of China said in a statement on Sunday.

The one-year loans can be extended twice, for up to a year each time, the statement added.


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China’s policymakers look to boost liquidity and increase confidence in the world’s second-biggest economy amid headwinds from a property crisis and frictions with major trading partners.

Analysts expect the technology industry to become China’s next driver of growth amid a downturn in its real-estate sector, which once accounted for about 25% of the country’s GDP.

At the same time, the Xi Jinping-led Chinese government is also looking to combat a technology war unleashed by the United States and Europe.

Washington and Brussels are taking increasing measures to clamp down on flows of advanced technology to Beijing. They are also taking steps to increase tariffs on Chinese manufactures deemed to be benefiting from China’s generous state subsidies.

Both the US and Europe, for instance, are taking steps to curb the flows of advanced chips and chipmaking tools to China, citing concerns about their use by the Chinese military.

Both have also opened probes into Chinese EV-manufacturers. While the US has cited concerns over data flows to Beijing, Europe has said Chinese carmakers might have an ‘unfair’ advantage over local manufacturers due to the backing of Chinese state subsidies.

US Treasury Secretary Janet Yellen is currently visiting China to raise concerns about the country’s ‘excess production’ of clean energy technology, such as EVs and solar panels, backed by massive subsidies from Beijing.

But far from curbing investment in manufacturing, China has doubled down on Xi’s new mantra of unleashing “new productive forces”.

The country’s policymakers have stepped up investments in cutting-edge technology including semiconductors, electric vehicles, quantum computing, commercial spaceflight and life sciences – areas where many Western firms hold advantages.



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  • Reuters, with additional editing by Vishakha Saxena


Also read:

China Bans Government Computers From Using Intel, AMD Chips: FT

China Aims for Self Sufficiency in Emerging Tech, AI, Big Data

US Panel Wants Investment Ban on Critical Tech Sectors in China

SMIC, Huawei Big Winners as China Ramps Up Chip Funding

Huawei, US-Sanctioned Firms Win as China Dumps Western Tech

China Ups Approvals for Public AI Models in Race to Rival US

US, EU Can’t Meet Climate Goals Without China’s Cheap Green Tech

EU Says China EVs Funded by Subsidies, Plans Retroactive Tariffs

China Vows to Help EV Makers Expand Overseas, Fight Sanctions

China’s Secret Drive to ‘Delete America’ From Its Tech – WSJ

China ‘Closing Gap’ on US in Quantum Technology Race – SCMP


Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]


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