China Establishes New RMB 10 Trillion M&A Fund to Accelerate Artificial Intelligence Development

Artificial intelligence is rapidly becoming one of the central pillars of China’s long-term economic development strategy. Over the past decade, the Chinese government has increasingly positioned AI as a strategic technology capable of transforming industrial production, strengthening technological competitiveness, and driving economic growth across multiple sectors.

China intends to further accelerate the development of its AI ecosystem during the upcoming 15th Five-Year Plan period (2026–2030). During the economic-themed press conference of the 4th Session of the 14th National People’s Congress on 6 March 2026 Chairman Zheng Shanjie of the National Development and Reform Committee (NDRC) stated that China will deepen the “Artificial Intelligence Plus” initiative, with the goal of expanding the scale of AI-related industries to more than RMB 10 trillion by the end of the 15th Five-Year Plan period.

At the same time, Chinese authorities announced plans to establish a national-level mergers and acquisitions (M&A) fund to improve financing channels for innovative companies and facilitate industry restructuring. The fund is expected to play an important role in supporting venture capital exit mechanisms and promoting capital circulation within China’s innovation ecosystem.

Executive Summary

• The National Development and Reform Commission (NDRC) announced plans to deepen the “Artificial Intelligence Plus” initiative during a press conference at the 4th Session of the 14th National People’s Congress on 6 March 2026.
• According to NDRC Chairman Zheng Shanjie, China aims to expand the scale of AI-related industries to more than RMB 10 trillion by the end of the 15th Five-Year Plan period (2026–2030).
• The government plans to establish a national-level mergers and acquisitions fund in cooperation with the Ministry of Finance and the People’s Bank of China.
• The fund aims to improve venture capital exit mechanisms and enhance capital circulation within the innovation ecosystem, potentially leveraging more than RMB 1 trillion in investment.
• The policy reflects China’s broader strategy to develop new productive forces and accelerate technological innovation.

Artificial Intelligence as a Strategic Industry

Artificial intelligence has become one of the most prominent strategic technologies in China’s industrial policy framework. Over the past decade, Chinese policymakers have consistently identified AI as a key driver of economic transformation and industrial modernization.

The emphasis on AI reflects both economic and technological considerations. From an economic perspective, AI has the potential to improve productivity, enhance manufacturing capabilities, and stimulate the development of new digital services. From a technological perspective, AI plays a critical role in strengthening China’s competitiveness in emerging global technology markets.

In recent years, China has already developed a large and rapidly growing AI ecosystem that includes technology companies, research institutions, startups, and industrial users across multiple sectors.

The government’s latest policy signals suggest that this ecosystem will continue to expand significantly during the next planning period.

The “Artificial Intelligence Plus” Strategy

A key component of China’s AI policy framework is the “Artificial Intelligence Plus” initiative. This strategy focuses on integrating AI technologies into a wide range of industries and public services.

Rather than treating AI as a standalone sector, the initiative aims to embed AI capabilities into existing economic activities. This includes applications in manufacturing, healthcare, transportation, finance, agriculture, and public administration. By combining AI technologies with traditional industries, policymakers hope to improve productivity, create new business models, and enhance the efficiency of economic systems.

According to NDRC officials, the continued expansion of the “Artificial Intelligence Plus” initiative will be an important driver behind the projected growth of China’s AI industry.

A Target of RMB 10 Trillion by 2030

One of the most significant announcements made during the 2026 policy briefing concerns the scale of China’s AI industry.

According to the NDRC, the Chinese government expects the total scale of AI-related industries to exceed RMB 10 trillion by the end of the 15th Five-Year Plan period. This figure includes both the core AI industry, such as AI software, algorithms, and computing infrastructure, and the broader range of industries that integrate AI technologies into their operations.

The projected expansion reflects the rapid growth already observed in China’s AI sector. Official estimates indicate that the core AI industry had already surpassed RMB 900 billion in 2024, with strong growth momentum continuing in subsequent years.

By integrating AI technologies across multiple sectors, policymakers expect the overall economic impact of AI to increase substantially over the coming decade.

Establishing a National Mergers and Acquisitions Fund

In addition to setting ambitious industry targets, Chinese authorities are introducing new financial mechanisms to support AI development. One of the most notable initiatives is the plan to establish a national-level mergers and acquisitions fund. This fund will be created in cooperation with several government institutions, including the Ministry of Finance and the People’s Bank of China. The purpose of the fund is to facilitate industry consolidation, improve capital allocation, and support the growth of innovative enterprises.

According to policy explanations provided during the press conference, the fund will also help address one of the challenges faced by China’s venture capital sector: the limited availability of exit channels for investors. By promoting mergers and acquisitions among technology companies, the new fund aims to create more efficient pathways for venture capital investments to mature and circulate within the innovation ecosystem.

Financing Innovation and Industry Integration

The establishment of the national M&A fund reflects a broader effort to improve the financing environment for emerging technology sectors.

China has already developed several large government-backed investment funds, particularly in areas such as semiconductors, advanced manufacturing, and high-technology industries.

The new M&A fund will complement these existing financing mechanisms by focusing specifically on industry restructuring and consolidation. Officials estimate that the fund could leverage more than RMB 1 trillion in additional investment by mobilizing capital from both public and private sources.

AI and the Development of New Productive Forces

The development of artificial intelligence is closely linked to China’s broader concept of “new productive forces”, which refers to emerging forms of productivity driven by technological innovation, digital transformation, and advanced industrial capabilities.  By investing heavily in AI research, infrastructure, and industrial applications, Chinese policymakers aim to ensure that the country remains competitive in the next wave of technological development.

AI technologies play a central role in this vision because they can enhance efficiency across multiple sectors while enabling entirely new forms of economic activity. From intelligent manufacturing systems to autonomous vehicles and smart healthcare applications, AI is expected to reshape many aspects of China’s economic structure.

Integrating AI Across the Economy

Another important aspect of China’s AI strategy is the emphasis on cross-sector integration. Rather than limiting AI development to specialized technology companies, policymakers aim to embed AI technologies across the broader economy. This includes sectors such as manufacturing, logistics, healthcare, education, finance, and public services. The widespread adoption of AI across multiple industries is expected to generate significant productivity gains and create new opportunities for innovation.

What This Means for Business

China’s latest policy signals regarding artificial intelligence highlight several important trends that companies should consider when evaluating opportunities in the Chinese market.

• The ambitious target of expanding the AI industry to more than RMB 10 trillion by 2030 indicates that AI will remain a central focus of China’s industrial policy. Businesses operating in sectors related to digital technologies, data infrastructure, and intelligent systems may find growing opportunities for collaboration and investment.
• The establishment of a national-level mergers and acquisitions fund suggests that policymakers intend to accelerate industry consolidation and support the scaling of innovative companies. This could create new opportunities for strategic partnerships, acquisitions, and investment in China’s technology ecosystem.
• The continued expansion of the “Artificial Intelligence Plus” initiative indicates that AI technologies will increasingly be integrated into traditional industries. Companies operating in sectors such as manufacturing, healthcare, and logistics may benefit from adopting AI-enabled solutions to improve productivity and competitiveness.
• The combination of industrial policy support and financial investment mechanisms underscores China’s determination to strengthen its position in global technology competition.

For international companies, understanding how China’s AI strategy evolves during the 15th Five-Year Plan period will be essential for identifying long-term business opportunities and navigating the country’s rapidly evolving technology landscape.

Sources

• Policy interpretation: 国家发改委：再设立国家级并购基金，“十五五”末人工智能相关产业规模将超10万亿元
• Chinese Government Website – Policy interpretation on AI industry development and investment funds
  https://www.gov.cn/zhengce/2026-03/06/content_6950050.htm
• China News Service – NDRC briefing on AI industry targets
  https://www.chinanews.com.cn/cj/2026/03-06/10582202.shtml
• People’s Political Consultative Conference News – NPC press conference coverage
  https://www.rmzxw.com.cn/c/2026-03-06/3880615.shtml
• Industry analysis of the “Artificial Intelligence Plus” strategy and investment mechanisms
  https://www.93913.com/119745.html
• Industry development statistics on China’s AI sector
• https://www.sohu.com/a/993273350_114760