Incompetence
Having money is not the only quality required to be a VC. You also need to understand the industries you’re investing in, have a good eye for talent, and have a strong grasp of macroeconomic trends and what the market is going to look like in the future. Doubtless, China’s government has many skilled VCs on its payroll. But does it have enough to effectively deploy US$336 billion in an intelligent way? Absolutely not.