https://en.people.cn/n3/2026/0407/c90000-20444072.html

China plans to increase fiscal expenditure on science and technology by 10 percent this year to 426.42 billion yuan ($62 billion), the fastest growth among major spending categories, as part of a sustained push to achieve technological self-reliance.

The proposed spending significantly outpaces the average growth rate for central government expenditures.

In 2008, science and technology related spending stood at about 107.7 billion yuan, accounting for 8 percent of central expenditures. It surpassed 200 billion yuan in 2012, topped 300 billion yuan in 2018, and is now expected to surpass 400 billion yuan this year, representing about 9.4 percent of central spending.

The spending priorities align with the Government Work Report, which identified accelerating high-level technological self-reliance as one of the key tasks this year. The report called for “strengthening original innovation, tackling core technologies, increasing investment in basic research and providing long-term stable support”.

China has broken into the global top 10 of innovation rankings for the first time, according to the Global Innovation Index 2025 released by the World Intellectual Property Organization in September.

The government’s commitment to innovation extends beyond direct science spending. The 2026 central budget allocates 200 billion yuan in ultra-long special treasury bonds to support equipment upgrades across industries. Additionally, 250 billion yuan in ultra-long special treasury bonds is designated for consumer goods trade-in programs, which will help create market demand for innovative products.