Record investments and scientific self‑reliance in Chinese laboratories

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Record investments and scientific self‑reliance in Chinese laboratories– China is pouring unprecedented sums into research and development in a bid to become a world leader in chemistry, biotechnology, and new materials. In 2025, R&D spending reached almost 3.9 trillion yuan, equivalent to 2.8% of GDP; measured in purchasing power parity, China has now overtaken the US in total research spending.

Technological self‑reliance is at the heart of the new five‑year plan. Beijing views high‑tech sectors – from hydrogen and batteries to biomedical innovation – as the engine of a “new economy” designed to offset slowing growth. The country is deliberately focusing on its own breakthroughs rather than merely applying technologies developed elsewhere.

Catch‑up race in basic research

For a long time, China was strong in applied technology but weak in genuine basic science. The country now wants to close this gap. Spending on basic research rose to around 280 billion yuan in 2025, more than 7% of total R&D expenditure – a symbolic threshold.

A multi‑track strategy

The government is building stable, long‑term funding programs for top researchers and pioneering, interdisciplinary projects. Universities are revising textbooks to incorporate the latest research findings and are striving to train more STEM talent while also recruiting from abroad. In addition, a special visa has been introduced for foreign scientists.

The key public research funder

The National Natural Science Foundation of China (NSFC) is the country’s main public research funder and is placing greater emphasis on young researchers and interdisciplinary projects in areas such as artificial intelligence, materials science, and biology. Clinician‑scientists are also receiving extra support to improve the translation of laboratory results into medical practice.

Industry: cautious in basic research, aggressive in innovation

Despite the rise of major tech companies, the state remains by far the largest funder of research. Companies account for less than 4% of spending on basic research. Nevertheless, some private players are taking on a pioneering role.
Tech giant Tencent has set up a 10‑billion‑yuan fund for high‑risk basic research in the natural and life sciences. Xiaomi became the first private company to donate a substantial sum to the NSFC for research funding.

Intense competition

At the same time, there is fierce competition across numerous sectors – from advanced materials to new energy – to be the first to deliver market‑ready innovations. Even traditional state‑owned enterprises such as PetroChina are establishing research institutes that are explicitly tasked with breaking away from old, bureaucratic structures and achieving world‑class results.

Biotech as a showcase of Chinese innovation

The biomedical industry is seen as a showcase for China’s new ambitions. A market once dominated by generics is now experiencing rapid growth in homegrown innovative drugs. Multinational firms are increasingly signing major licensing deals with Chinese companies; Pfizer, for example, concluded a multibillion‑dollar agreement for an experimental cancer drug developed by 3SBio.

Two key advantages

China has two major advantages in this field: a huge patient pool and relatively inexpensive, fast clinical trials. Since 2021, it has been the world’s largest location for clinical research. Accelerated review procedures and large‑scale support programs are intended to further speed up the development of first‑in‑class medicines.

Structural bottlenecks

At the same time, the sector struggles with structural challenges, such as a shortage of highly qualified physician‑scientists and volatile private funding. Without enough experts who understand both clinical practice and molecular research, it remains difficult to turn discoveries into successful drugs.

International cooperation remains crucial

Although China is expanding its research infrastructure at breakneck speed and attracting many scientists returning from the US, international cooperation remains essential. Numerous leading laboratories have been built by researchers who were trained abroad.

A balancing act

Chinese scientists stress that genuine breakthroughs require open scientific exchange, especially in basic research. As geopolitical tensions rise, China is trying to strike a balance: greater technological autonomy on the one hand, and sufficient international connectivity on the other to remain in the top tier of global science.

Source: C&en Chemical & Engineering News
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