# State Capitalism

The Hefei Model: How China’s ‘Venture Capital City’ Bet on Chips and Won Big

Hefei is set to reap a historic windfall from the IPO of chipmaker Changxin Technology, validating its 'venture capital' approach to industrial policy. The city’s strategic state-led investments in semiconductors, displays, and EVs have propelled it into the ranks of China's megacities while creating a new blueprint for state-led economic development.