"the Ministry of Industry and Information Technology, which oversees the fund is currently grappling with challenges in securing money for the funds new objectives."
It's government fund looking for private investment.
The private investors aren't convinced that there is a return in the future given the current general environment , the fund's goals, or the fund's corruption or the lingering/looming/continuing/metastasizing trade/cold war .
I find the headline fair but all headlines can't contain the full complexity of article which can never contain the full complexity of reality.
Even a rich country like China (or a richer one like the US) needs to be cautious with the levels of investment required by modern Fab facilities.