Chinese President Xi Jinping attends the 14th National Committee of the Chinese People’s Political Consultative Conference in Beijing. Credit: Lintao Zhang/Getty
The Chinese government is ramping up its support for science, announcing plans to boost two key budgets at the country’s biggest political meeting called the Two Sessions.
China has proposed to increase its overall research and development (R&D) expenditure by at least 7% per year over the next five years, which translates to billions of extra dollars each year. This typically covers government and private-industry spending on basic research, applied research and experimental development.
China’s R&D expenditure has skyrocketed over the past 20 years. Last year, it exceeded 3.9 trillion yuan (US$567 billion). For the past five years, it has has increased by at least 8% a year.
China’s latest R&D target was set as part of the country’s next five-year plan (FYP), which serves as an overarching blueprint and will run from 2026 to 2030. The plan — the 15th in the country’s history — is currently being reviewed by lawmakers in Beijing.
Unlike many countries, including the United States, in which private companies drive R&D, China’s has so far been dominated by state-owned enterprises and government laboratories. As of 2023, the Chinese government was the world’s biggest spender on R&D, according to the Organisation for Economic Co-operation and Development (OECD). But China wants private companies to lead its R&D over the next five years.
Although the country’s latest R&D budget proposal is the same as the target set in the 14th FYP, China’s spending on science and technology in absolute numbers is rising significantly, says Steven Hai, a political economist focusing on technology innovation at Xi’an Jiaotong-Liverpool University in Suzhou, China. “Today’s 7% represents an absolute annual increment far exceeding that of five years ago,” he says.
Science boost
At the Two Sessions, the central government also announced plans to increase the science and technology budget to 426 billion yuan this year, a 10% increase from 2025. This budget, which the central government controls directly, is expected to support major projects, fund national labs and help the nation to overcome technical bottlenecks.
Science used to play a supporting part in China’s economic growth. However, the government now regards science, particularly artificial intelligence, as crucial for all aspects of the economy, says Stefanie Kam, who researches Chinese politics at Nanyang Technological University in Singapore. In 2017, China set the goal to become a world leader in AI by 2030.
The Chinese government’s investment in science comes in sharp contrast to US President Donald Trump’s administration, which has tried to cut science spending since Trump took office in early 2025. Many of those proposed cuts have so far been rejected by the country’s Congress.
Hai expects China’s consistent investment in science to draw global talent and innovation resources into the country.
