Even assuming that the govt fund behaves just like private Chinese VCs you'll see the bulk of the money going towards startups that try to replicate US/Internat

Even assuming that the govt fund behaves just like private Chinese VCs you'll see the bulk of the money going towards startups that try to replicate US/International innovation success stories domestically. Xiaomi is not a threat to startups. It's a threat to consumer electronics manufactures with higher cost bases that are slow at innovation. China is good at globalization plays, but still bad at innovation. Startups don't need to worry [yet].