(Bloomberg) Beijing is turning into a new generation of disruptive startups in a new government program escalating tech war with the US to counter Silicon Valley.
In a government program that targets small tech firms in sectors such as quantum computing, robotics, and semiconductors, giants such as Alibaba and Tencent are out of favor by the state.
Uisee, a Beijing company, raised 1 billion yuan or $157 million in 2021, with some funds coming from a state-controlled fund. The funding helped the company hit unicorn status, with a more than $1 billion valuation.
The strategic tech startups have earned the label “little giants,” illustrating their specialty in particular sectors that others lack.
The “little giants” are seen to earn the blessing of President Xi Jinping, allowing the investors to view them as insulated from potential government crackdown.
Lee Kai-Fu, the founder of venture firm Sinovation, says the government approval is similar to a subsidy and a stamp of approval, with the move expected to reposition the country’s tech sector.
The program for the “little giants” has existed in China for more than a decade, with the latest revival happening as Beijing cracks the whip on giants such as Alibaba and counters US trade wars.
CSI 300 is up +0.16%.
