Science & Technology DepartmentScience & Technology Department

Embassy of the People’s Republic of ChinaEmbassy of the People’s Republic of China

February 2007February 2007

China’s S&T Policies &China’s S&T Policies &Collaboration with IndiaCollaboration with India

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Basic Facts on China’s Science and Technology

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China’s Economy in 2006China’s Economy in 2006

Gross Domestic Product (GDP): ¥ 20.94 trillion Yuan (RMB) $ 2,600 billion dollars

GDP per capita: ¥ 15,800 RMB $ 1,950 Dollars

GDP Growth: Agriculture: 14% Industry: 52% Services: 34%

Fourth largest economy in the world

Shanghai, Guangzhou $10,000 GDP per capita

Large cities $4000-8000 GDP per capita

Many rural areas way below $1,000

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R&D Activities by Funding Resources

Total funding on R&D ¥ 300 billion RMB in 2006 ($ 38 billion dollars)

R&D input against GDP:1995 0.6%2000 1.0%2005 1.3%2020 2.5%

1991 ～ 2004 Gross Domestic Expenditure on R&D

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Central & local governmentS&T appropriation

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GERD in selected countries

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R&D expenditure in countries by type of activity

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In 2004 S&T papers of selected countries catalogued by SCI, EI and ISTP

Country

SCI, ISTP & EI

Papers % Rankings

World Total 1,760,620 100.00

USA 520,297 29.55 1

Japan 138,995 7.89 2

UK 134,685 7.65 3

Germany 123,369 7.01 4

China 111,356 6.32 5

France 82,981 4.71 6

Italy 67,790 3.85 7

Russia 40,369 2.29 11

India 34,348 1.95 14

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Patent applications filed and granted by SIPO

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S&T human resources

1998 755.2

1999 821.7

2000 922.1

2001 956.5

2002 1035.1

2003 1094.8

2004 1200.0

S&T professionals (in 1000 full time equivalents)

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Science Diplomats from China About 130 in total of 45 countries A dual administration: dispatched by MOST,

managed by MOFA S&T sections with 6-8 persons:

Washington DC, London, Paris, Berlin, Brussels, Moscow, Tokyo

With 3-4 persons:Rome, NY, SF, Huston, Delhi, Stockholm, Ottawa, Canberra…

With 2 persons:LA, Chicago, Seoul, Tel Aviv, Pretoria, Cairo, Prague…

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Challenges and Opportunities

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GDP增长率的国际比较

0. 00%

2. 00%

4. 00%

6. 00%

8. 00%

10. 00%

1998 1999 2000 2001 2002

年份GDP中国 增长率 GDP全球 增长率GDP发展中国家 增长率 GDP发达国家 增长率

GDP Growth Rate: China vs. Other Countries

China

Developing

World Average

Developed

China

Developing countries

World average

Developed countries

Can China sustain for further 20 years high growing?

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China’s success in the past 20 years largely by:

Relatively low cost labour forces

Abundant domestic market Extensive resources input Assimilation of technology High saving rate (~50%)

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S&T Section Chinese EmbassyS&T Section Chinese Embassy

Quadruple Economic Growth

Annual rate

7.2%

2000 2020

¥ 40 tnGDP

¥ 10 tn

per capita GDP energy consumption reduces 4% each year

main pollutants cut 40% by 2020

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Domestic Oil supply and demand

Domestic Production

Total Consumption

200

100

1980 1985 1990 1995 2000 Year

150

Annual Export

Annual Import

By 2005 importing oil over 120 million tons

19931993

Million Tons

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NATIONAL ROLES : POLICY AND CATALYTIC PROGRAMS 1982 1986 1988 Key Technology SPARK 863 TORCH 973 R&D Program PROGRAM PROGRAM PROGHRAM PROGRAM

BASIC R&D

High Technology

1982 1986 1988 1997

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Major Achievements on S&T Development (1)

Fourth country in the world with technology on launching multiple satellites in single rocket carrier

Third country in the world to launch manned space-craft

Earth observation

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Major Achievements on S&T Development (2)

Optical fibers

3G standard TD-SCDMA

Next generation of Internet IPv6

Super hybrid rice and genetic modified anti-pest cotton

Vaccines for hepatitis B, bird flu

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Critical Problems and ChallengesCritical Problems and Challengesin China S&Tin China S&T

Capacity low on indigenous innovation Enterprises not yet as principal players on

innovative activity Quality instead of quantity: efficiency and high

value-added Mobilizing resources more effectively on a

whole society effort Maintaining a high quality of professionals at

national level Creating an atmosphere being critical on

scientific research and innovation

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Policy Change inChina Science and Technology

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Evolution of S&T Strategies and PoliciesEvolution of S&T Strategies and Policies

1980: Lean-upon and Face to: Economic development must lean upon advancement of S&T

S&T development must face to economic development

1986: Assimilation & Commercialization

1995: Rejuvenating China through Advancement of Science and Education

1996: Sustainable Development

2003: Talent Strategy

2006: Indigenous Innovation

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China Climbing the Technological Stairs

Creation

Improvement

Assimilation

Acquisition

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R&D

Design &Engineering

Technician & CraftSkills & Capabilities

Basic OperatorsSkills and Capabilities

(Material transformation)

ScienceDevelopmentand Creation

ScienceUse, Operation

and Maintenance

(Human talent levels)

Copy from Prof. Jon Sigurdson

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Becoming a Technological Power – Requirements

1. Absorbing foreign S&T knowledge and R&D results – Diffusion

2. Universities and education that embrace science and technology – Expansion

3. Abundant scientific manpower outside the ivory towers – Continued Reform

4. Ample and discretionary financial resources to support R&D – Expansion and Critical Review

5. Institutions and culture that promote science and technology – 2020 S&T Plan

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Guideline for China S&T in Next 15 Years

Indigenous Innovation

Frog-leaping in key areas

Underpinning development

Taking lead to the future

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Indigenous Innovation

Power of choice in guiding technology development

Enterprises as key player in linking universities and marketplace

Scientific research not just ends up with papers but with products in markets

Special policy package with 60 articles in favour of innovation released in 2006

Technology transfer, absorbing and assimilation

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Frog-leaping in Key Areas

Breakthroughs in key strategic areas that are vital to China’s economic & social development : High-techs in IT, bio-, nano-technologies and new

energies Special programmes: Moon landing, 150 seat aircrafts,

high-yield crop seeds… Role of government fits into socialist market economy

A funding agency, not THE funding agency Focused on a model of talent-project-base Creating a platform: labs, information sharing,

standards, collaborations Creating an environment for knowledge transfer Further promoting systematic reform

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Underpinning Development

Building a modern service industry via ICT, BPO…

Upgrading secondary industry to enhance efficiency, energy saving and environmentally friendly

Providing adequate and proved technologies to rural development

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Institutional innovation

Facilitate enterprises to become key participants in R&D and to play leading roles in innovation

Encourage close cooperation among business, academia, and research institutes

Reform the education system to make it more friendly to the growth of creative and inventive talents

Reform the S&T personnel management Accelerate the development of non-for profit

organization Reform government’s management system to

improve its efficiency and transparency

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Priority Programs (2006-2010) (1)

Core electronic device, high-end universal chips and basic software

Supper scale IC manufacturing equipment and technology

New generation of broad band wireless mobile communication system

High precision digital control lathe and manufacturing equipment

Large scale oil and natural gas field and CBM recovery technology

Pressurized water reactor and high temperature gas-cooled reactor power plant

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Priority Programs (2006-2010) (2)

Water pollution control

Gene transformation and new crop variety development

New drug development for major diseases

Control of major communicable disease e.g. AIDS and hepatitis

Large passenger aircraft

High definition earth observation system

Manned space flight and moon-landing

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S &T Collaboration with India

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Current China-India Cooperation Governmental Cooperation

• China-India Agreement for Science and Technology Cooperation signed in 1988

• Since 1988, twenty agreements / MOUs for S&T cooperation signed between governmental departments of the two countries

Enterprises Cooperation• Currently about 50 Chinese companies in India, working

on 150 projects. Huawei Technology has its largest overseas R&D base in Bangalore, more than 1200 staff

• Over 150 Indian companies in China, mostly S&T companies, on more than 1000 projects

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Future Direction for S&T Cooperation

Joint Steering Committee for China-India S&T Cooperation established during H.E. Mr. Kapal Sibal’s visit to China in 2006

Proposed Areas of Cooperation• Information technology• manufacturing technology• Meteorology and climate change• Biotechnology and nanotechnology

Joint Declaration signed during the state visit of the Chinese President H.E. Mr. Hu Jintao to India in November 2006

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Future Direction for S&T Cooperation

Both sides agree to launch joint projects in:• earthquake engineering• climate change and weather forecasting• nano-technology with focus on advanced materials• biotechnology and medicines with focus on bio-nano

Promote cooperation in civil nuclear energy through multilateral projects such as ITER

Strengthen cooperation in the use of space technologies in satellite remote sensing, satellite communications, satellite meteorology, disaster mitigation and satellite launch services