PUBLIC LECTURE
China's science and technology towards the new era
The Shine Dome, Canberra, 16 February 2006
Professor Xu Guanhua
Minister of Science and Technology, The People's Republic of China
New features of China’s science and technology
The first five years of the new century have witnessed a transition of China’s science and technology development strategy and set the stage for in-depth changes in our science and technology enterprise while efforts have continued to build on the previous achievements. With a fairly comprehensive system of scientific disciplines put in place during the past two decades of reform and opening-up, science and technology are becoming central to China’s economic success and indigenous innovative capability in a global context.
Professor Xu Guanhua, Minister of Science and Technology, The People's Republic of China.
Over the recent years, China has made substantial improvements to its overall S&T strength. This is particularly evident in S&T human resources development. We now have a sizable S&T workforce totaling 32 million people, with 1.05 million person-years engaged in research and development, and this puts China in the first and second places in the world respectively. Our capability in basic research, high-tech R&D, and major product development has also improved steadily. Since 1997, the number of scientific papers authored by China included in the SCI index has increased by 19% per year, ranking the fifth in the world. In 2004, the number of Chinese engineering science papers listed in EI increased by 34%. In addition, Chinese scientists have caught world attention with their accomplishments in manned space flights, nanotechnology, hematopoietic stem cells, non-linear optical materials, quantum ICT, parallel computation technology, ultra-intense and ultra-short lasers, and other high-tech fields.
Meanwhile, the role of science and technology has become much more visible in promoting economic growth and social development by underpinning the modernisation drive in China. For example, through years of concerted efforts by Professor Yuan Longping, the 'Father of Hybrid Paddy Rice', and other agricultural scientists, the per unit area output of crops has increased continuously. In spite of the population growth by some 270 million over the two decades, the annual per capita grain supply for the Chinese people has jumped from 300kg to 400kg. In some major construction projects such as the world’s largest Three Gorges Hydroelectric Project and highest altitude Qinghai-Tibet railway, a great number of technological snags have been overcome, thus ensuring the smooth implementation of the projects. During the past decade, the Chinese high-tech sector has maintained a high rate of growth and become a principal driver for China’s economic progress and restructuring. In the area of public health, by depending heavily on scientific and technological advances, the Chinese Government has successfully contained the spread of major epidemics like SARS and Avian Influenza. In addition, systematic research and development have been organised on a number of new drugs with proprietary IPR and on diagnostic and treatment technologies to combat serious life-threatening diseases. In the area of disaster prevention and mitigation, new approaches and models have been developed, thus effectively upgrading the forecast level for such natural disasters as earthquake and severe climatic conditions.
With years of efforts to reform the S&T system of China, a national innovation system responsive to the socialist market economy is taking shape. In 1999, the Chinese Government began a major effort to push for corporate restructuring of application-oriented research institutions affiliated with the central and local governments, while at the same time introducing reforms into public service research institutes by line of business. Such a massive institutional restructuring of the S&T system at the national level was unprecedented in China’s recent history. Over 30 specific policies were issued, covering such matters as financial inputs, ownership reform, stock incentive, tax reduction and exemption, social security, and retirement pension. Thus far, reforms on the two fronts have produced many positive results. Having been transformed into enterprises, the application-oriented research institutions have expanded S&T investment and output, playing an important role in industrial S&T progress. With respect to reforms of public service research institutes, major breakthroughs have been made in inducing crucial management and operational changes, in optimising personnel and discipline structure, and in drastically enhancing public research and service capabilities. It is particularly worth mentioning that, through sustained and deepened reforms, a technological innovation system characterised by industry/university/academia links at the core is taking shape. As a result, enterprises now account for two thirds of the country’s total R&D expenditures, and play an increasingly important role in high-tech research, major innovative product design and development, and joint R&D with universities and research institutes. In the face of global market competition, China has seen the rise of some innovative and competitive local companies and a large number of highly versatile and innovative small and medium-sized technology-based enterprises.
As for providing the environment for science and technology and innovation, legal system, infrastructure, and opening cooperation are the major inputs. The Chinese Government promulgated the Law on Science and Technology Progress in 1993, putting Chinese science and technology onto the track of a legalised path of development. This was followed by specific laws and regulations for the transfer of scientific and technological achievements, promotion of popular science activities, reforms of the national S&T planning system, management of national S&T plans and projects, S&T achievements embodying intellectual property rights, S&T assessment and awards, supervision of project funding, and others designed to regulate activities of government, research institutes, and individual scientists. In the aspect of infrastructure construction for scientific research, the Chinese Government launched the 'R&D Infrastructure and Platform Development Program' in 2003, with a view to setting up a platform to integrate dispersed data, materials and information through national guidance. With these efforts, the open sharing and efficient utilisation of S&T resources were promoted. Up to now, with a state appropriation of 1.5 billion yuan, a series of standards and regulations have been formulated, over 100 pilot projects launched, and 12 S&T data sharing centers and networks established.
Speaking of international cooperation, we advocate active participation, especially in the mega international S&T projects. China has established ties with 152 countries and entered into inter-governmental S&T cooperation agreement with 96 countries. S&T cooperation has become an important part of China’s foreign relationship. China has participated in the Global Earth Observation System of Systems (GEOSS), Human Genome Program, Ocean Drilling Program, Galileo Program, and ITER program. We have every reason to believe that these active and effective activities will have far-reaching influence on S&T progress in China.
However, we are keenly aware that, confronted with fierce global competition and pressing demand for socio-economic development, there is still a fairly big gap between China’s overall S&T strength and the world advanced levels. We haven’t been able to make original contribution to basic research, especially the cross-disciplinary areas. Although China has maintained a 20% annual increase in patent applications over the recent years, the ratio of invention patent application is still insignificant. Although a major manufacturing power, China is still to a large extent reliant on the international market for key equipment with high technology content. Compared with rapid growth in China’s industrial S&T, the public S&T undertakings lag behind. The backward conditions, insufficient capability and lack of service have become new constraints for social development. In the next 5–15 years, we will have to look to reform and innovation for addressing these problems, so that we will be able to ensure the country’s overall S&T progress and economic and social development.
Directions for China’s future S&T development
We live in a period of great economic and social change, where science and technology are becoming central to our economic success and social well-being. Both developed and developing nations are faced with new challenges. With rapid advances in science and technology around the globe, the human society in the 21st century will take on the following features. First, the knowledge-based society will trigger intensive transformations in human activities and social and organisation structures; second, the globalising international environment will lead to greater inter-dependence among nations for market, resources, and other factors; third, pursuing sustainable development driven by scientific and technological innovation has become the common task of mankind. As science and technology will be crucial in addressing the human challenges in the future, many countries have made nearly identical strategic choices in order to survive and prosper in this new global economy.
Two years ago, the Chinese Government began to formulate the National Medium and Long-term S&T Development Plan, which was released for implementation at the end of last year. The Plan set the direction for China’s future S&T development. On January 9th, 2006, the Chinese Government held a National S&T Conference, which was considered a milestone, for it constituted a mobilisation rally for the whole country to implement the plan, enhance indigenous innovation capability, and build China into an innovative country. It is foreseeable that in the near future, China will step into a new era of science and technology development.
First of all, the people-first concept will be stressed in China’s future S&T development, and the concept of scientific development will be embraced. 1) It is the starting point of S&T undertakings to meet people’s increasing material and spiritual needs, in order to have everyone enjoy the benefits of S&T and new opportunities for development. 2) It should be the prerequisite of science and technology development to discover, educate and attract talents in all science and technology fields especially those of high caliber. The fundamental task is to inspire the enthusiasm and creativity of the S&T personnel, and create a favourable environment and conditions for S&T management. 3) Public understanding of science and technology should be placed at a position of same importance as innovation, enhancing the S&T literacy level of the general public and laying a solid social foundation for the innovation-oriented country and harmonious society.
Secondly, the new development of China’s S&T should follow the principle of 'indigenous innovation, leapfrogging in key areas, underpinning developments, and setting the direction for the future'. This new principle points to the general direction for China’s S&T for the coming 15 years. We will also amend the Law on Science & Technology Progress in consistence with the new strategic principle and issue a set of policies accordingly. President Hu Jintao has, on many occasions, emphasized that indigenous innovation should be on top of the agenda of all S&T endeavors and the capacity building for innovation as the core of structural realignment and the national competitiveness. Therefore, the strategic principle will have bearing not only on S&T, but also on the economy, politics and culture. I’d like to elaborate a bit more on the indigenous innovation. It is a concept with several connotations, including original innovation for more scientific discoveries and technological inventions; integrated innovation, referring to the assimilation of related technologies, which give rise to products and industries with market competitiveness; and re-innovation based on digestion and absorption of the advanced foreign technologies. We firmly believe that, only by extensive learning and exchanges, can China realise more rapid growth of S&T so as to consolidate the foundation of knowledge and technology for indigenous innovation. As a developing country, China should make the most of the open international environment and learn from the advanced technologies from various countries while adhering to indigenous innovation as the basis for S&T advancement.
Thirdly, the basic goal of new development for China’s S&T is to pave the way for China to become an innovation-oriented country over the next 15 years marked by significantly improved indigenous innovative capability. It is based on our national conditions and demands as well as resources and environmental constraints that we have made such a strategic choice. The Chinese Government has made a commitment to building a well-off society in an all-round way. When we accomplish this, we shall turn China into a fairly affluent, civil society with one fifth of the world’s population. This will be the most arduous and grand task of social progress ever undertaken in human history and an opportunity for China and the rest of the world in S&T development. To reach that goal, China has to keep an annual economic growth rate of 7% for another two decades, an unprecedented challenge in world economic history. To become an innovative nation, we must enhance our S&T and Innovation capability and output by a large margin, increase the contribution by science and technology to the socio-economic progress, and hasten the building up of resource saving and environment friendly society while ensuring continued economic success.
In line with the National Medium and Long-term S&T Development Plan, we have identified priorities and basic deployment of the S&T undertakings towards 2020. The country will implement a number of high-tech strategic products and special engineering projects, with a view to fostering breakthroughs in key technologies and achieving leapfrogging of productivity gains. To serve socio-economic development, the major deployments are as follows: Assign priority to technologies relevant to energy, water resources and environment protection, make determined efforts to tackle bottlenecks in the national economic development through S&T innovation, promote cyclic economy and lay a solid foundation for resource-efficient and environmentally-friendly society; Grasping opportunities presented by the upgrading of information technology and spectacular advances in new materials technology, obtain indigenous IPR over equipment manufacturing and information technologies to make breakthroughs in enhancing the industrial competitiveness of China; Making the development of biotechnology as a priority, drastically increase support levels for biotechnology R&D and application, with a view to ensuring food safety, optimizing agro-product structure and improving people’s health; Focusing on major equipment sets, high-tech equipment, new generation green manufacturing processes and equipment, and informatisation of the manufacturing sector, strive for breakthroughs in key industrial technologies with bright prospect and high connectivity, promote the rise of indigenous brand name products, and upgrade the overall indigenous innovative capability in major equipment and product development; Arrange for deployments in basic science and frontier technologies ahead of schedule so as to accelerate developments in aerospace and marine technologies.
In the new Five-year Plan, we will increase inputs to S&T development for social services and stress urban and township construction technology, modern comprehensive transport technology, public security forecast, prevention, and advanced warning, and emergency treatment technology so as to improve people’s quality of life and safeguard public security. At the same time, we will strengthen the construction of national and regional innovation systems and support S&T development at the local level.
Expand international S&T cooperation and strengthen China-Australia S&T ties
In the context of globalisation, science and technology have become an important component of international relations. With increasing pervasiveness of S&T cooperation, it has become a major trend for S&T to go international. It is even more so in tackling common issues, such as resources, energy, the environment, ocean, atmosphere, severe diseases, as well as mega science. All these issues can not be addressed without the participation and collaboration among countries around the world. With improved scientific and economic strength, China’s participation in major international S&T programs will be further expanded.
Experience from the two decades of reform and opening up in China shows, economic cooperation is often preceded by cooperation in science and technology. Extensive scientific and technological cooperation is guaranteed to lead the China-Australia cooperation into new areas and new spaces. According to our experience in reform and opening up, science and technology exchanges pave the way for more understanding in each other’s science and society and shall serve as a bridge for stronger economic ties. China-Australia S&T collaboration is of great importance in China’s S&T cooperation framework, occupying an extremely important place in S&T cooperation among the APEC economies. Since the agreement on cooperation in science and technology was signed in May 1980, the two sides have maintained close ties and friendly collaborative momentum. Extensive exchanges and collaborative activities have been carried out in agriculture, forestry, animal husbandry, remote sensing, environment protection, new materials, biology and basic science. The China-Australia Joint Commission for S&T Cooperation has met five times, identifying dozens of joint projects. In January, 2000, MoST of China and the former Australian Department of Industry, Science and Resources (DISR) signed an MOU on Special Fund for carrying out joint activities of mutual-benefit and reciprocity. We are now very pleased to see the deepening of bilateral cooperation. More and more organisations have joined the collaboration under the special fund scheme.
As you all know, China and Australia share a great deal of complementarities in economic development and S&T endeavors. I believe that everyone here agrees with me in that there is still much potential to be tapped for China-Australia S&T cooperation. The common priority areas can be further expanded, the scale of projects further enlarged, and the ties between scientists and enterprises further strengthened. During this visit, I have exchanged views with my counterpart in the DEST on S&T cooperation. The two ministries have signed MOU on Special Fund for China-Australia S&T Cooperation and Letter of Intent on China-Australia Young Scientists Exchange Scheme. In the next five years, the two governments will provide more financial support for scientists of both countries to implement joint projects in areas of agriculture and biotechnology, energy and environment technology, information technology, etc. Both sides will also select excellent young scientists for academic exchanges in research institutes of another country. The Asia-Pacific region is universally recognised as the most dynamic economic community, with greatest potential and competitiveness. It can be safely said that S&T cooperation will play a more and more important role. I have a firm belief that, with our concerted efforts, the China-Australia S&T cooperation will stride for a new boom.
Thank you for your attention.
