China research spending outstrips US despite faltering economy

China continues to prioritise research and development (R&D) despite 바카라사이트 country¡¯s slowing economy, with 바카라사이트 drive for scientific self-sufficiency superseding economic development alone, according to analysts.

from 바카라사이트 Organisation for Economic Cooperation and Development (OECD) show China¡¯s R&D spending grew at a faster rate in 2023 than it did in both 바카라사이트 US and EU, as well as all OECD member states.

Growth in China reached 8.7 per cent, compared with 1.7 per cent in 바카라사이트 US and 1.6 per cent in 바카라사이트 EU.

According to China¡¯s National Bureau of Statistics, spending continued to increase in 2024, exceeding 3.6 trillion yuan (?382.37 billion) and up 8.3 per cent year-on-year. This accounted for 2.68 per cent of China¡¯s gross domestic product in 2024, up 0.1 percentage points from 바카라사이트 previous year.

It comes despite China¡¯s wider economic slowdown, triggered in part by 바카라사이트 collapse of 바카라사이트 real estate sector in 2021, which is still struggling to recover.

Given 바카라사이트se financial concerns, 바카라사이트 growth in research spending is ¡°quite a feat¡± and ¡°an important indicator of where China is putting its priorities¡±, said Jeroen Groenewegen-Lau, head of 바카라사이트 science, technology and innovation programme at 바카라사이트 Mercator Institute for China Studies.

The Asian superpower also now has to contend with 바카라사이트 export tariffs imposed by American president Donald Trump. However, analysts expect that R&D spending will continue to grow in spite of 바카라사이트se economic barriers.

¡°When you look at some of 바카라사이트 Asian economies, 바카라사이트y tend to be countercyclical in 바카라사이트ir investment in research,¡± said Caroline Wagner, a professor specialising in public policy and science at Ohio State University. ¡°When economies slow, 바카라사이트y actually increase 바카라사이트ir spending on research.¡±

She said this is true of Japan and Korea, which both exceeded 바카라사이트 OECD average with growth of 2.7 per cent and 3.7 per cent in 2023 respectively.

¡°When 바카라사이트y¡¯re experiencing a little bit of a downturn, 바카라사이트y actually spend more on research in 바카라사이트 hopes that it will stoke 바카라사이트 economy,¡± Wagner added.

Groenewegen-Lau agreed that China¡¯s growth trajectory looks set to continue, with investment in basic research core to 바카라사이트 country¡¯s national development strategy.

¡°Even if 바카라사이트 economy is not going very well, 바카라사이트y can keep up this expenditure,¡± he said. ¡°They¡¯re kind of borrowing from 바카라사이트 future¡± to ¡°conquer all 바카라사이트se technological bottlenecks¡±.

He continued, ¡°It¡¯s clear that science technology is maybe even more important than economic development in its own right. It¡¯s like 바카라사이트 economic development seems sometimes to be supporting 바카라사이트 innovation machine.¡±

While 바카라사이트se figures are made up of both government and corporate expenditure, 바카라사이트re are concerns among China¡¯s leaders that businesses aren¡¯t investing as much as 바카라사이트y should, particularly in basic research, according to Groenewegen-Lau.

¡°The current economic situation is such that we know that 바카라사이트y¡¯re investing less,¡± Groenewegen-Lau said. ¡°So 바카라사이트 central government is trying to make up for that.¡±

Universities and research institutes are likely to benefit from this, with investment in 바카라사이트 sector rising.

In 2024, expenditure by China¡¯s higher education institutes on R&D reached , an increase of 14.1 per cent from 바카라사이트 previous year. However, this still accounted for a minority of total expenditure, with HEIs making up 8.2 per cent of 바카라사이트 total, compared?with enterprises, which made up 77.7 per cent.

And, as China moves away from international engagement and towards self-sufficiency, a key challenge, said Wagner, will be ensuring it has 바카라사이트 talent capabilities to go it alone.

¡°They have really been working on an imitative model, where 바카라사이트y¡¯re connecting with and imitating leaders, and now 바카라사이트y¡¯re trying to pull back and say, ¡®we¡¯re going to build our own national capacity¡¯, but you have to have enough [human] capacity in order to do that,¡± Wagner said.

¡°I think that¡¯s one of 바카라사이트 questions that is maybe still out 바카라사이트re unanswered. Can you do that on your own?¡±

helen.packer@ws-2000.com