Linear Capital Perspective | Frontier technologies that bring order-of-magnitude productivity gains to industry — and the products they power — may transform Chinese manufacturing from "corner overtaking" to "changing lanes entirely."

In mid-August, at the 16th China Investment Annual Summit hosted by ChinaVenture, Songyan Huang, Managing Director at Linear Capital, joined a panel discussion on "Made in China: From Following to Leading" and shared his perspectives on the topic.

The session was moderated by Tao Tang, founder of Haochen Capital, with fellow panelists including Jinghe Chen, Chairman and General Manager of Qingdao CASIVC Investment; Zhenghao Fang, Managing Partner at Xiaomiao Langcheng; Yao Li, Managing Director at NIO Capital; Jin Qian, Chairman of Chuanggu Capital; Yu Song, Managing Director at Junsheng Capital; and Jin Wang, Partner at Chuanhua Capital. A full transcript of the session has been published on ChinaVenture's website and can also be accessed via the "Read More" link.

When asked for his take on Chinese manufacturing at this juncture, Huang observed: "I see two distinct segments in China's manufacturing, or more precisely, its high-end intelligent manufacturing. One is product-level manufacturing, the other is core components. What we've observed is that at the product level, China has over the past decade reached the global forefront in certain directions and across multiple points. For instance, we led the angel round in Agile Robots, which originated from the German Aerospace Center — the birthplace of force control technology. The founder's mentor was the inventor of force control technology himself. They've built remarkably capable intelligent feedback robotic arms. Another portfolio company, Weijian Technology, builds production and manufacturing robots that rank among the best globally. I attribute their success to two factors: First, China has the world's most complex and largest market demand, which drives product-level innovation forward. Second, there's the accumulation of talent. After reform and opening up, students went abroad for education, and some worked overseas for many years. Having built substantial track records in academia and industry, they chose to return and start companies.

If someone with deep expertise in one field suddenly decides, on a whim, to launch a project in an entirely different discipline — that's simply not viable in the technology sector. What I've observed among Linear's portfolio founders is that most have accumulated extensive experience in a specific domain, and happen to reach the peak of their careers just as they decide to return and build something. This foundation is what determines the quality of the product.

That said, we still see considerable room for improvement in core components. Some highly critical, high-end components — particularly those with extremely demanding performance requirements, such as precision reducers — remain dominated by Japanese and German manufacturers. We're also seeing domestic companies working hard to move in this direction. China has complex market demand, and product R&D is advancing toward world-class standards. Only with demand and products in place can supply chain systems evolve; as core components gradually catch up, the entire manufacturing sector can move forward."

Addressing the question of what investment opportunities will emerge as Chinese manufacturing shifts from following to leading, Huang noted: "I oversee Linear's deep technology investments. Using frontier technology to dramatically improve industrial productivity is a direction we pay close attention to. 'Corner overtaking' has been discussed extensively, but in reality, massive improvements in production efficiency and productivity can deliver such tremendous shocks to existing industrial structures that they may carve out entirely new paths — effectively moving from 'corner overtaking' to 'switching lanes and switching vehicles.' To illustrate: if everyone's technology is roughly comparable and we're all driving Santanas, how could I possibly overtake anyone?"

He emphasized that Linear Capital consistently focuses on technologies capable of delivering order-of-magnitude productivity gains. Only products driven by such technologies can generate massive disruption in industries, creating opportunities to forge new paths — giving Made in China the "switching lanes and switching vehicles" effect needed to achieve true leadership.

About Linear Capital

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Linear Capital is a specialized investment firm focused on Data Intelligence and Frontier Technology.

The firm currently manages ten funds with total AUM of approximately $2 billion.

We focus on early-stage opportunities across Data Application, Data Infrastructure, and Frontier Technology applications. Our investment stage spans primarily from angel to Series A lead rounds, with typical check sizes of $3–8 million or RMB equivalent.

To date, we have made early-stage investments in over 120 teams, including Horizon Robotics ($3B valuation), Tongdun (>$1B), Kujiale (>$1B), Sensors Data, Tezign, Rokid, Guandata, Agile Robots, and others. The aggregate valuation of Linear's portfolio companies stands at approximately $20 billion.

In the near term, Linear Capital is working to become the premier Data Intelligence Technology Fund, with a long-term vision of evolving into the most influential Frontier Technology Application Fund.