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The Evolution of China’s Science and Technology Policy

16 0
08.10.2026

The Chinese political leadership continues to place utmost importance on promoting science for economic development. However, technology’s impact on society, especially in the era of automation, remains challenging.

At the National Science and Technology Award Conference held on 8 July 2026 in Beijing, Chinese President Xi Jinping called upon the members of the Chinese Academy of Sciences and the Chinese Academy of Engineering to “accelerate efforts” to become a leading country in science and technology by 2035.[1] This comes against the backdrop of China’s 15th Five-Year Plan (FYP) (2026–2030), approved in March 2026, which set an ambitious goal of increasing average annual investment in research and development (R&D) by at least 7 per cent.[2]

Many have applauded China’s rapid rise as a global scientific powerhouse. Magdalena Skipper, Nature’s Editor-in-Chief, lauded the increase in funding for science and technology in China’s 15th FYP, stating that “the government understands that science needs financial support”, which is “an important part of the growth of a nation”.[3]  In 2024, China spent US$ 1.03 trillion on R&D, while the US spent US$ 1.01 trillion.[4] This has had geopolitical implications as well. Citing ‘national security’ and ‘other foreign policy interests’, the US National Science Foundation announced a ban on scientific research collaboration with Chinese research institutions and universities, effective from 1 October 2026.[5]

Against the backdrop of the Chinese government’s strong focus on science and technology, this brief examines the factors behind the Chinese political fascination with science and technology. It briefly reviews the importance of science to economic growth, which helps explain one of the fundamental reasons the Chinese political leadership continues to prioritise promoting science.

Science and Technology for Economic Growth

In everyday conversation, the terms ‘science’ and ‘technology’ are often used as a single entity. But in reality, both have distinct meanings and activities, yet they are highly interdependent.[6] In general, ‘science’ seeks knowledge based on truth, whereas ‘technology’ employs that particular knowledge, derived from science, to solve practical problems. Thus, amid persistent debate over whether to emphasise basic scientific research or disruptive technology innovation research, it is generally recognised that basic scientific research has a broader impact than the latter, as technological change and innovation depend on progress in basic scientific knowledge.[7] Hence, scientific powerhouses like China consistently focus on strengthening basic research to enhance their capacity for original innovation.[8]

Certainly, the role of science and technology in economic growth has long been recognised. In Rostow’s Stages Theory of economic growth, science and technology remain crucial, especially for low-income countries moving from ‘take-off’ to sustained growth.[9] However, the impact of science and technology remains uneven as most scientific and technological knowledge is concentrated in developed countries. To eliminate the underdevelopment of developing countries and improve the well-being of humanity through scientific knowledge, even the United Nations in 1979 in the ‘Vienna Programme of Action on Science and Technology for Development’ recommended major guidelines, including the formulation of national science policy involving planning, budgeting and execution of scientific and technological activities relevant to defined development objectives.[10] Additionally, to promote collective self-reliance among developing countries, it recommended bilateral and multilateral cooperation for joint research and resource utilisation.

China’s economic transformation before the 1978 opening and reform, its rise from one of the poorest countries to the world’s second-largest economy in terms of Gross Domestic Product is no small achievement. Among the most striking features that have captured the imagination of economists and Western commentators are the three decades’ impressive growth rate and the significant reduction in poverty, to which several factors have been attributed.

These include the ‘gradualist reform approach’, which focused on facilitating township and village enterprises (TVEs) by re-allocating surplus labour from agriculture to labour-intensive light industries. Later, amid rising labour costs, the government shifted focus to capital-intensive sectors, i.e., infrastructure, real estate and communication.[11] In lifting close to 800 million people out of extreme poverty, key drivers included agricultural reforms and industrial restructuring, including the establishment of Special Economic Zones.

This consequently drove rural workers to move to urban areas for jobs in coastal areas and led to substantial public investment in transport, electricity and telecommunications infrastructure.[12] Similarly, economist Yasheng Huang argues that China’s remarkable growth and poverty reduction stemmed mainly from rural development and internal reforms such as TVEs and financial liberalisation rather than the dominant narrative of globalisation and state-led industrialisation.[13]

Beyond the various variables highlighted by economists in explaining China’s remarkable growth rate over the past decades, the role of science and technology, whether through adoption or innovation, has been a primary contributor to its economic ‘take-off’.[14] In this regard, every Chinese leadership has treated science and technology as the foremost ‘productive force’.[15]

‘Scientism’ in Republic of China (1912–1949)

In modern China, a........

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