Development of China’s ultra-precision equipment industry and support of patient capital

Authors

Hong JIANG, China Development Bank, Beijing 100031, ChinaFollow

Keywords

ultra-precision equipment; patient capital; scientific and technological credit; strategic scientists; policy recommendations

Document Type

Current Landscape and Future Perspectives of High-end Manufacturing

Abstract

As a core field of high-end manufacturing, China’s ultra-precision equipment industry has achieved rapid development driven by policy support and technological advancements. Nevertheless, it still faces challenges such as technological bottlenecks, international competition, and funding shortages. Its characteristics—long R&D cycles, high risks, and substantial capital investments—are misaligned with the risk-averse nature of traditional financial systems, urgently requiring the support of “patient capital”. Although China possesses a vast pool of long-term capital (e.g., social security funds and insurance funds), systemic gaps prevent these funds from being effectively transformed into patient capital that supports frontier technologies. This study argues that developing patient capital necessitates establishing a scientific and technological credit system, leveraging the bridging role of strategic scientists, and bridging the gap between scientific and technological innovation and capital integration. Current investment models, including government funds, corporate direct investments, financial asset investment firms, and specialized funds focusing on ultra-precision equipment, face issues such as limited decision-making flexibility and low risk tolerance. To address this, the study proposes policy measures to strengthen the role of strategic scientists in financial institutions, support technology-transfer funds, optimize conditions for insurance capital participation, and provide tax incentives. These efforts aim to build a multi-tiered patient capital ecosystem, overcome “bottleneck” technologies, and promote industrial upgrading.

First page

852

Last Page

860

Language

Chinese

Publisher

Bulletin of Chinese Academy of Sciences

References

1 姜洪, 姜渔, 付煜. 运用科技信用培育耐心资本. 中国金融, 2024, (23): 79-81. Jiang H, Jiang Y, Fu Y. Utilize technological credit to cultivate patient capital. China Financial, 2024, (23): 79-81. (in Chinese)

2 陈元. 科技与资本. 清华金融评论, 2021, (1): 14-19. Chen Y. Technology and Capital. Tsinghua Financial Review, 2021, (1): 14-19. (in Chinese)

Recommended Citation

JIANG, Hong (2024) "Development of China’s ultra-precision equipment industry and support of patient capital," Bulletin of Chinese Academy of Sciences (Chinese Version): Vol. 40 : Iss. 5 , Article 11.
DOI: https://doi.org/10.3724/j.issn.1000-3045.20250414005
Available at: https://bulletinofcas.researchcommons.org/journal/vol40/iss5/11