China Boosts R&D Spending By 7% Per Year Over The Next Five Years, Aiming Fo...

China Boosts R&D Spending By 7% Per Year Over The Next Five Years, Aiming For Major Technology Breakthroughs

China Boosts R&D Spending By 7% Per Year Over The Next Five Years, Aiming For Major Technology Breakthroughs

March 5, 2021 7:10 pm

Beijing (PingWest)- China will increase its annual spending on research and development by more than 7% per year over the next five years, Premier Li Keqiang wrote in a government report from the Fourth Session of the 13th National People’s Congress.

China will increase its spending on research by 10.6% in 2021, the report added.

Li did not disclose details regarding the actual amount of government spending, but he said research and developing will account for a higher percentage of gross domestic product (GDP) than in the previous 5 year.

According to official figures, China’s spending on R&D account were CNY2.44 trillion in 2020, representing year-over-year increase of 10.3%.

The annual spending on R&D will dedicate mainly to key technology sector that China aims to boost including artificial intelligence, quantum computing, cloud computing, brain science, semiconductors, genetic research and biotechnology, clinical medicine and health, and deep space, deep sea and polar exploration.

China also encourages companies to open more third-party big data services in areas ranging from search, e-commerce to social media.

In addition, the government report noted China would welcome and support foreign-funded companies to set up R&D centers in China.

Shanghai’s STAR board will play bigger role in helping domestic companies raising capital, the report said.

In June 13, 2020, China officially launched Nasdaq-style STAR Market, with highly anticipation that the tech board will nurture the growth of China’s own world-class firm in key areas such as chip manufacturing、biotechnology and computer software.

The idea behind the Star Market is to encourage investment in domestic tech companies, ensuring more Chinese home-grown companies have sufficient capital to grow and have an incentive to list at home.

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