Guangzhou Haige Communications Group, which provides communications and navigation equipment to the Chinese military, has agreed to partner with China Poly Group and other entities to set up a RMB3bn ($471m) corporate venture capital fund.
Haige Communications’ predecessor was a military ordnance factory, while Poly Technologies is a subsidiary of China Poly, the largest state-owned supplier of military equipment, missile technologies and drones to the Chinese military, according to Yang I Kwei, a researcher at the Institute for National Defense and Security Research, a think tank affiliated with Taiwan’s Ministry of National Defense, said the Taipei Times, which reported the fund news.
The planned fund is expected to serve as a platform for the Chinese military to enhance its technology competition with the US, he told the Times.
Many of the US’s largest military suppliers, such as Lockheed Martin, Airbus and Raytheon, already have developed CVC and open innovation strategies, while NATO, the joint defence alliance covering western Europe and North America is preparing its $1bn venture fund strategy.
