The Ministry of Finance’s report on 2021 fiscal policy execution shows central government expenditure of RMB 11.73 trillion, down 0.9% year on year. Within that, spending on education, science and technology, and social security and employment rose 3.5%, 7.2% and 3.99% respectively — all above the overall trend.
Science is a protected line: central-level science and technology spending was RMB 320.6 billion despite overall central spending continuing to shrink, and spending on basic research reached RMB 72.1 billion, up 15.3%. The structure tilted toward basic research, core technology breakthroughs and building national strategic research capacity.
Reforming how research money is spent
Reform of central research funding management went further than the totals suggest. Twenty-five measures across seven areas gave project leads more autonomy over their budgets: budget categories were cut from nine or more to just three — equipment, operating and labour costs — and the indirect cost ratio rose sharply, with spending on people allowed to reach 50% of project funding.
Where it lands
The report stresses supply-chain resilience and self-reliance in core technologies, concentrating national resources on the hardest problems. National laboratories, reform of research institutes, research universities, a state fund to guide the commercialisation of research results, and enterprises leading consortiums on major national projects all feature.
One concrete result: central awards of RMB 3.5 billion supported two batches totalling 1,379 key ‘little giant’ firms. Nationally, 4,762 such specialised SMEs have now been cultivated, covering every province for the first time. More than 300 of them are listed, with average revenue and net profit growth above 25% over the past two years — roughly twice the average for all listed companies.
Republished for information. The original text has not been independently verified and does not necessarily reflect our views.
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