The Chinese and Russian governments have announced plans to launch a new joint investment fund called the Russia-China Venture Fund worth up to $100 million, which will start operating in 2017.
The new fund to help startup companies in both countries will be managed by the Russia-China Investment Fund and the Chinese TUS Holdings.
Signed on November 7, the new fund will help promote the development of trade and economic ties between the two countries, according to a press release from the Russian-state fund.
The total amount may increase beyond the initial $100 million, if more state bodies join in on future projects, the document adds.
The new fund will target Russian tech companies, including startups, with a potential for further development in China.
The RCIF will play a significant role in the financial sector, Big Data, cloud technologies, biotechnology, biomedicine, clean energy, new materials, smart technologies and data transmission.
This is the latest joint project between Beijing and Moscow, as in June 2016 both countries signed the so-called “One Belt, One Road” fund worth an estimated $4 billion to develop projects across Central Asia and China.
A part of the new fund will be for joint Russian and Chinese technology and telecoms projects, according to the deal.
In March 2016, the Russian conglomerate Sistema was reported to be in the process of creating a venture fund in partnership with China’s TUS Holdings. This fund’s capital was not to exceed $100 million at the beginning, with the Chinese side contributing 70% of this amount.
