The Chinese government needs to let the market play a decisive role in allocating resources, says an article in China Business News. Some excerpts:

The central government decided to expand the scale of its startup fund for emerging industries, and has made good use of the fund to help small and medium-sized companies.

Yet, the government should do more to improve the efficiency of the fund than simply expanding its size.

The government needs to use the money to revitalize the state’s science and technology innovation system and create more jobs.

If the fund is to help smaller-scale enterprises, it also should make it easier for these enterprises to access than bank loans.

The fund should not be blinded by immediate gains, because it usually takes a long time for emerging industries to generate profits, and sometimes, risks are unavoidable.