Technology Author: EqualOcean News, Xiwen Zheng Jul 02, 2021 09:29 AM (GMT+8)

The global tech standoff may stimulate the country's technological rise.

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Research and Development (R&D) forms the backbone of the technological innovation and scientific self-sufficiency China is trying to achieve. Decades of robust economic growth have enabled the Chinese government to dedicate more resources to R&D.

During the Thirteenth Five-Year Plan (2011 – 2015), China's R&D expenditures maintained an average annual double-digit growth. In 2020, the number exceeded CNY 2.4 trillion (USD 378 billion), accounting for 2.39% of the country's GDP. The figure is projected to reach CNY 4.07 trillion (USD 628 billion) by 2025.

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Major catalysts

  • The Fourteenth Five-Year Plan. The Chinese government published the draft of the Fourteenth Five-Year Plan for 2021 to 2025 and Vision through 2035 in the first of the 'Two Sessions' in 2021. Premier Li Keqiang revealed that China would lower the annual increase rate in R&D spending compared with the past four years but raise the proportion of science spending devoted to basic research: the annual R&D spending growth rate will be at least 7% every year over the next five years, and the overall share of basic research in R&D spending is projected to rise from 6% to more than 8% by the end of 2025.

  • The United States Innovation and Competition Act. In June, the US passed the United States Innovation and Competition Act, which authorizes more than USD 200 billion to help the US suppress China's economic and political influence domestically and abroad and maintain a US dominant edge in cutting-edge technology. China is to express its commitment to advancing in the technology sector as the country increasingly enters into conflict with the United States over technology policy.