Alarming China Factoid of the Day
Beijing’s R&D budget: 5 trillion yuan (US$758.4 billion)
Sean Darby, Asia strategist for Nomura international (HK) Ltd., estimated the amount of spending over the next five years in a report this week at 5 trillion yuan (US$758.4 billion), an even bigger amount than the mammoth – and successful – 4 trillion yuan stimulus package announced by the central government in 2008 as an attempt to minimize the impact of the global financial crisis.
Hugh Peyman, the managing director of Research-Works, the leading independent equities research firm based in China, told Asia Sentinel that “It will be larger than people think. We are 60 percent of the way through a 25-year program to get R&D up to 2 percent of GDP, yet 75 percent of the spending lies ahead in the last decade to 2020.”
In addition, although most of the R&D funding was by China’s state-owned industries, today 71 percent of spending is by private and state-owned enterprises – the same as the OECD’s – 19 percent by government and 9 percent by universities. Some 75 percent of the R&D by enterprises is by local companies.
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