In 2020, the Chinese government launched the Program of New Infrastructure Construction, an industrial policy aimed at establishing China as a global leader in high-technology manufacturing. Unlike previous industrial policies, this program involved a significant number of private high-technology companies (HTCs). Given that China's economic model is characterized by state capitalism, why has the Chinese industrial policy supported private HTCs? This article examines the Chinese industrial policy regime through the lens of the institutional change approach and argues that the support for private HTCs is rooted in their ability to effectively respond to internal and external impacts on the policy regime. This support has been particularly crucial during the escalating tensions between the United States and China. According to the findings of this study, China's industrial policy regime has begun to undergo a shift. The previous preference for state-owned enterprises (SOEs) is gradually loosening, allowing for the introduction of market mechanisms and creating space for private enterprises to participate in the industrial policy regime. However, it is important to note that the authority to selectively support entities through market mechanisms still rests with the Chinese government. Therefore, the industrial policy regime characterized by public-private cooperation as discussed in this article reinforces, rather than weakens, the resilience of China's state capitalism.