Since May 2025, China has launched a massive funding program worth 500 billion yuan (about $70 billion USD) to support fast-growing industries like artificial intelligence (AI), digital economy, and smart infrastructure. The goal is to push forward high-tech development and improve the country’s digital and green infrastructure. This funding is being managed by major policy banks, including the China Development Bank and the Agricultural Development Bank of China.

This move is part of China’s strategy to modernize its economy by focusing on innovation, green technology, and sustainable growth. The funds are mainly going into areas like smart transportation systems, digital platforms, and environmentally friendly projects. By doing this, China hopes to reduce its dependence on fossil fuels and support long-term economic stability.

Even though this funding boost focuses on tech and infrastructure, it doesn’t directly affect public blockchain networks like Bitcoin or Ethereum. Instead, the investments are going toward regulated digital technologies and state-approved platforms. China has consistently taken a cautious stance on decentralized cryptocurrencies, preferring to build its own centralized digital ecosystem.

In past government funding rounds, such as those in 2018 and 2021, China’s financial support strongly benefited local tech giants like Tencent and centralized digital platforms. These efforts had little to no effect on global crypto markets or public blockchain tokens.

Currently, Ethereum (ETH) is trading at $4,239.62 with a market cap of around $511.7 billion USD. In the past 24 hours, trading volume dropped by 26.32%, and the price dipped by 1.64%. However, over the last 90 days, Ethereum has gained a solid 64.62%—showing strong momentum despite short-term fluctuations.

Analysts say that while China’s financial tools can greatly improve tech infrastructure, they are designed to avoid involvement with volatile or speculative crypto markets. The government continues to promote a tightly regulated digital economy while warning investors about the risks of trading virtual tokens or participating in unregulated crypto schemes.

As always, it’s important for investors and tech watchers to stay informed, be cautious about hype in the crypto space, and recognize the difference between government-backed innovation and speculative digital assets.