China uses capital markets to fund AI and chip race against U.S.

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Chinese tech firms raised $217 billion through IPOs and bond sales over two years, but still trail U.S. peers by more than 6-to-1

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China is redirecting the power of its $28 trillion stock and bond markets toward funding its technology competition with the United States, with memory chipmaker CXMT Corp.'s record Shanghai debut serving as the most visible example of that strategy, according to Bloomberg.

The shift marks a departure from Beijing's traditional reliance on subsidies, tax incentives, and state investment to build strategic industries. Over the past two years, Chinese tech companies pulled in roughly $217 billion by tapping equity and debt markets, Bloomberg data show. American counterparts outpaced them by a ratio exceeding six to one, with Amazon $AMZN and Alphabet $GOOGL among the biggest contributors to that gap.