Venture capital in China is facing challenges as state influence grows, according to Jin Yuhang, chairman of Dingxing Quantum, a VC firm focused on high-tech investments like AI and semiconductors. Established in 2013, the firm traditionally relied on private sector investors, but now 90% of its limited partners are government guidance funds, leading to significant changes in the investment landscape. Jin expresses concern over this shift, highlighting the difficulties faced by VC firms as state-owned capital dominates the market. This trend is explored in the first part of a deeper analysis on the topic.