Science & Technology Department Embassy of the People ’ s Republic of China February 2007

1. China’s S&T Policies & Collaboration with India Science & Technology Department Embassy of the People’s Republic of China February 2007

2. Basic Facts on China’s Science and Technology

3. China’s Economy in 2006 • Gross Domestic Product (GDP): • ¥20.94 trillion Yuan (RMB) • $ 2,600 billion dollars • GDP per capita: • ¥15,800 RMB • $ 1,950 Dollars • GDP Growth: • Agriculture: 14% • Industry: 52% • Services: 34% • Fourth largest economy in the world • Shanghai, Guangzhou $10,000 GDP per capita • Large cities $4000-8000 GDP per capita • Many rural areas way below $1,000

4. R&D Activities by Funding Resources Total funding on R&D ¥300 billion RMB in 2006 ($ 38 billion dollars)

5. 1991～2004 Gross Domestic Expenditure on R&D R&D input against GDP: 1995 0.6% 2000 1.0% 2005 1.3% 2020 2.5%

6. Central & local governmentS&T appropriation

7. GERD in selected countries

8. R&D expenditure in countries by type of activity

9. In 2004 S&T papers of selected countries catalogued by SCI, EI and ISTP

10. Patent applications filed and granted by SIPO

11. S&T human resources S&T professionals (in 1000 full time equivalents)

12. Science Diplomats from China • About 130 in total of 45 countries • A dual administration: dispatched by MOST, managed by MOFA • S&T sections with 6-8 persons: Washington DC, London, Paris, Berlin, Brussels, Moscow, Tokyo • With 3-4 persons: Rome, NY, SF, Huston, Delhi, Stockholm, Ottawa, Canberra… • With 2 persons: LA, Chicago, Seoul, Tel Aviv, Pretoria, Cairo, Prague…

13. Challenges and Opportunities

14. China Developing countries World average Developed countries GDP Growth Rate: China vs. Other Countries Can China sustain for further 20 years high growing? China Developing World Average Developed

15. China’s success in the past 20 years largely by: • Relatively low cost labour forces • Abundant domestic market • Extensive resources input • Assimilation of technology • High saving rate (~50%)

16. Annual rate 7.2% GDP ¥ 40 tn Quadruple Economic Growth per capita GDP energy consumption reduces 4% each year main pollutants cut 40% by 2020 ¥ 10 tn 2020 2000

17. By 2005 importing oil over 120 million tons Million Tons 200 Annual Import Domestic Production 150 Total Consumption 100 Annual Export 1993 1995 2000 Year 1980 1985 1990 Domestic Oil supply and demand

18. 1982 1986 1988 1997

19. Major Achievements on S&T Development (1) • Fourth country in the world with technology on launching multiple satellites in single rocket carrier • Third country in the world to launch manned space-craft • Earth observation

20. Major Achievements on S&T Development (2) • Optical fibers • 3G standard TD-SCDMA • Next generation of Internet IPv6 • Super hybrid rice and genetic modified anti-pest cotton • Vaccines for hepatitis B, bird flu

21. Critical Problems and Challengesin China S&T • Capacity low on indigenous innovation • Enterprises not yet as principal players on innovative activity • Quality instead of quantity: efficiency and high value-added • Mobilizing resources more effectively on a whole society effort • Maintaining a high quality of professionals at national level • Creating an atmosphere being critical on scientific research and innovation

22. Policy Change in China Science and Technology

23. Evolution of S&T Strategies and Policies • 1980: Lean-upon and Face to: Economic development must lean upon advancement of S&T S&T development must face to economic development • 1986: Assimilation & Commercialization • 1995: Rejuvenating China through Advancement of Science and Education • 1996: Sustainable Development • 2003: Talent Strategy • 2006: Indigenous Innovation

25. R&D Science Development and Creation Design & Engineering Technician & Craft Skills & Capabilities Science Use, Operation and Maintenance Basic Operators Skills and Capabilities (Material transformation) (Human talent levels) Copy from Prof. Jon Sigurdson

26. Becoming a Technological Power – Requirements • Absorbing foreign S&T knowledge and R&D results – Diffusion • Universities and education that embrace science and technology – Expansion • Abundant scientific manpower outside the ivory towers – Continued Reform • Ample and discretionary financial resources to support R&D – Expansion and Critical Review • Institutions and culture that promote science and technology – 2020 S&T Plan

27. Guideline for China S&T in Next 15 Years • Indigenous Innovation • Frog-leaping in key areas • Underpinning development • Taking lead to the future

28. Indigenous Innovation • Power of choice in guiding technology development • Enterprises as key player in linking universities and marketplace • Scientific research not just ends up with papers but with products in markets • Special policy package with 60 articles in favour of innovation released in 2006 • Technology transfer, absorbing and assimilation

29. Frog-leaping in Key Areas • Breakthroughs in key strategic areas that are vital to China’s economic & social development : • High-techs in IT, bio-, nano-technologies and new energies • Special programmes: Moon landing, 150 seat aircrafts, high-yield crop seeds… • Role of government fits into socialist market economy • A funding agency, not THE funding agency • Focused on a model of talent-project-base • Creating a platform: labs, information sharing, standards, collaborations • Creating an environment for knowledge transfer • Further promoting systematic reform

30. Underpinning Development • Building a modern service industry via ICT, BPO… • Upgrading secondary industry to enhance efficiency, energy saving and environmentally friendly • Providing adequate and proved technologies to rural development

31. Institutional innovation • Facilitate enterprises to become key participants in R&D and to play leading roles in innovation • Encourage close cooperation among business, academia, and research institutes • Reform the education system to make it more friendly to the growth of creative and inventive talents • Reform the S&T personnel management • Accelerate the development of non-for profit organization • Reform government’s management system to improve its efficiency and transparency

32. Priority Programs (2006-2010) (1) • Core electronic device, high-end universal chips and basic software • Supper scale IC manufacturing equipment and technology • New generation of broad band wireless mobile communication system • High precision digital control lathe and manufacturing equipment • Large scale oil and natural gas field and CBM recovery technology • Pressurized water reactor and high temperature gas-cooled reactor power plant

33. Priority Programs (2006-2010) (2) • Water pollution control • Gene transformation and new crop variety development • New drug development for major diseases • Control of major communicable disease e.g. AIDS and hepatitis • Large passenger aircraft • High definition earth observation system • Manned space flight and moon-landing

34. S &T Collaboration with India

35. Current China-India Cooperation • Governmental Cooperation • China-India Agreement for Science and Technology Cooperation signed in 1988 • Since 1988, twenty agreements / MOUs for S&T cooperation signed between governmental departments of the two countries • Enterprises Cooperation • Currently about 50 Chinese companies in India, working on 150 projects.Huawei Technology has its largest overseas R&D base in Bangalore, more than 1200 staff • Over 150 Indian companies in China, mostly S&T companies, on more than 1000 projects

36. Future Direction for S&T Cooperation • Joint Steering Committee for China-India S&T Cooperation established during H.E. Mr. Kapal Sibal’s visit to China in 2006 • Proposed Areas of Cooperation • Information technology • manufacturing technology • Meteorology and climate change • Biotechnology and nanotechnology • Joint Declaration signed during the state visit of the Chinese President H.E. Mr. Hu Jintao to India in November 2006

37. Future Direction for S&T Cooperation • Both sides agree to launch joint projects in: • earthquake engineering • climate change and weather forecasting • nano-technology with focus on advanced materials • biotechnology and medicines with focus on bio-nano • Promote cooperation in civil nuclear energy through multilateral projects such as ITER • Strengthen cooperation in the use of space technologies in satellite remote sensing, satellite communications, satellite meteorology, disaster mitigation and satellite launch services