According to a recently released National Bureau of Statistics report on R&D resources, China’s R&D spending is growing quickly and is slated to reach 2% of GDP in 2010. In 2009, China’s total R&D spending was CNY 580 billion ($85 billion), or 1.7% of GDP, which represents an average annual increase of 23% since 2000, excluding inflation. The report cites China’s weakness in basic research as an obstacle to innovation. Basic and applied research spending comprised 4.7% and 12.6% of 2009 R&D expenditures, a decline of 5.2% and 17%, respectively, from 2000. Also in 2009, China invested CNY 27 billion ($4 billion) in basic research and CNY 73 billion ($10.7 billion) in applied research. The Chinese government has promised to increase basic research spending with a 15-year science and technology plan that has it comprising 15% of total R&D expenditure by 2020. To achieve this, basic research spending should account for approximately 10% of GDP by 2010.

Source: Science Insider