China’s R&D Budget Would Increase By 7% Per Year In-Order to Achieve Significant Technological Breakthroughs

  • • Between 2021 and 2025, China’s research and development spending will rise by more than 7% per year, according to Premier Li Keqiang.
  • • According to a draught of China’s five-year plan, R&D will account for a higher percentage of GDP than in the previous five years.
  • • China will focus on developing a variety of technology fields, including semiconductors, health care, quantum computing, and cloud computing, as per the initial proof for the five year plan said.

GUANGZHOU, CHINA (Reuters) – Premier Li Keqiang announced on Friday that China would increase its research and development budget over the next five years in order to achieve “significant technological breakthroughs.”

The remarks were made during a speech at China’s annual “Two Sessions” parliamentary conference, where Beijing sets out its goals for the coming years.

Tensions between the United States and China have spilled over into the technology room in recent years, affecting China’s largest companies such as Huawei and vital industries such as semiconductors.

In December 2020, the US added dozens of Chinese companies to a trade blacklist, including the country’s top chipmaker SMIC and Chinese drone manufacturer SZ DJI Technology Co. “Advanced US technologies will not be used to help develop the military of an increasingly belligerent adversary,” Commerce Secretary Wilbur Ross said in a statement. The Commerce Department added 77 companies and affiliates to its so-called entity list, including 60 Chinese firms.

The step was seen at the time as the latest in Republican Trump’s attempts to cement his tough-on-China legacy, as part of a long-running trade war between Washington and Beijing over a variety of economic issues.

If real, the blacklisting would be proof of US persecution of Chinese firms, according to China’s foreign ministry, and Beijing would continue to take “appropriate steps” to defend their interests.

In a daily news conference in Beijing, ministry spokesman Wang Wenbin said, “We urge the United States to cease its mistaken conduct of unwarranted persecution of international companies.”

China has attempted to concentrate on improving its domestic technical capabilities in a variety of ways.

Between 2021 and 2025, China’s research and development spending will rise by more than 7% per year, according to Li. R&D will account for a higher percentage of GDP than it did in the previous five years. He did not specify how much money the government would spend in total.

According to official estimates, China’s R&D spending increased 10.3% to 2.44 trillion Chinese yuan ($378 billion) in 2020, accounting for 2.4 percent of GDP.

Meanwhile, the central government’s spending on basic research will rise by 10.6%, according to Li.

This year’s Two Sessions mark the launch of China’s 14th five-year development plan, which sets out the country’s priorities and objectives for the next five years. The proposed strategy covers the years 2021-2025.

President Xi Jinping abolished term limits in 2018, and the annual meeting of delegates has overseen significant reforms in the past.

Li outlined China’s vision for the next five years in his paper.

“To boost China’s innovation framework, we will work faster to enhance our strategic scientific and technological capabilities, backed by the establishment of national laboratories, aim for major breakthroughs in core technologies in key fields, and formulate and implement a ten-year basic research action plan,” he said.

According to a draught of China’s five-year plan, the country will focus on developing a variety of technology fields, including semiconductors, health care, quantum computing, and cloud computing.

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