According to newly required annual department reports of China’s central government agencies, 2011 R&D spending was CNY 73.7 billion ($11.4 billion), 9% of gross domestic expenditure on R&D (GERD) or 39% of government contributions to GERD. Agencies also receive research funds from sources such as businesses and local governments. The Ministry of Science and Technology (MOST), Chinese Academy of Sciences (CAS) and National Natural Science Foundation of China accounted for more than 70% of government R&D spending. MOST’s CNY 21.3 billion in science and technology (S&T) funding was largely for National S&T Programs (NSTPs). Most of its R&D spending was for the State Basic R&D Program, the State High-Tech R&D Program and the National Key Technologies R&D Program, which made up around 90% of NSTPs. While CAS received CNY 16.4 billion in S&T funding from the central government, most of its funding came from other sources and was for basic research. Of central government spending, 45% of R&D funding and over 70% of basic-research funds were unaccounted for and assumed to be defense related. Spending on applied and basic research declined to 5% and 12% of GERD in 2011 from 5% and 26%, respectively, in 1995. The remaining percentages were spent on development.

Source: Science