Chinese investors set funding sights on AI, robotics firms

BEIJING – Start-ups looking for funding to develop next-generation technology like artificial intelligence and robotics, are increasingly likely to find it in China, according to China’s State-run newsagency, Xinhua.

Until recently, China had mostly been on the receiving end of venture capital from around the world as many of its top Internet firms, from Alibaba and Tencent to Uber competitor Didi and smartphone maker Xiaomi, received backing from overseas.

But outbound investment made by Chinese firms such as VC firm Comet Labs could signal a reverse in the flow of capital, as investors in China look out for entrepreneurs tinkering with what could eventually evolve into technology that redefines industries, Xinhua said.

Comet Labs, created by Chinese investment fund Legend Star, has seeded more than 30 start-ups since its founding last year. Earlier this month, Zhongguancun Development Group, a State-backed investment firm based in Beijing’s tech hub, Zhongguancun, also set up a fund to raise RMB10 to RMB20 million (about US$1.5-3 million) to incubate start-ups focused on smart manufacturing in Germany.

This investment comes at a time when China’s vast manufacturing sector is wobbling. Industrial production growth has been slowing consistently, sinking to 6% for the first half of 2016, compared with double-digit rates a couple of years ago. www.webershandwick.cn (ATI).