Science and Technology Daily:

Regarding the fifth plenary session of the 19th CPC Central Committee valued sci-tech self-reliance and self-strengthening as a strategic underpinning for national development, we noticed that the MOF had taken a number of measures to innovate research funding management and support basic research. Can you give us more details? Thank you.

Yu Weiping:

Thank you for your question, and I do appreciate your concerns. Viewing the course of human history and the country's future from a comprehensive and strategic perspective, General Secretary Xi Jinping has repeatedly emphasized that sci-tech self-reliance and self-strengthening should aways be considered a strategic support for national development, urging more efforts to build up China's strength in science and technology and strive for sci-tech self-reliance and self-strengthening at higher levels. Making sci-tech self-reliance a priority, the MOF has continuously scaled up investment, deepened management reforms, and innovated and perfected policies, steadily advancing the cause of building China into a sci-tech giant. Despite of the negative growth in its budgetary spending in 2021, the central government managed to allocate 320.554 billion yuan to the science and technology sector through adjusting its spending structure. 

First, we helped solidify the sci-tech foundation through continuously stepping up investment in basic research. In 2021, the central government's spending on basic research increased by 15.3%, mainly directed to natural science funds and basic research work of the Chinese Academy of Sciences. We also further improved the institutions and mechanisms designed to support basic research and original innovation. 

Second, we helped achieve sci-tech breakthroughs. Leveraging the new whole-nation system in a market economy, we successfully advanced the implementation of a batch of major sci-tech programs. With our financial support, an open competition mechanism was introduced to select the best candidates to lead key research projects with the aim of achieving breakthroughs in core technologies in key areas.

Third, focus on priorities. We have advanced the construction of national laboratories, supported reforms and development of research institutes, and promoted the building of high-level research-oriented universities. We have supported innovative organizations in cultivating, introducing and hiring scientific and technological talents, accelerated the construction of a major world center for professional talent and innovation, and boosted the country's strategic scientific and technological strength.

Fourth, promote development. We have boosted the principal role of enterprises in innovation, and supported enterprises to establish innovation alliances to undertake national scientific research tasks, and promoted the integration of industrial and innovation chains. We have improved the tax policies that support innovation, encouraged enterprises to increase R&D spending, and promoted close integration of science and technology with economic development. During the first three quarters of last year, the amount of R&D spending by enterprises eligible for additional tax deductions was 1.3 trillion yuan, with 330 billion yuan in tax cuts and exemptions. 

Fifth, promote reforms. We have improved the management of central government funds for scientific research, and granted greater autonomy in the management of scientific research funds. The number of budget items has been drastically reduced from more than nine to three. The three items are equipment cost, operating expenses and labor cost. The proportion of indirect expenses has been increased, and the proportion of scientific research funds spent on people reached more than 50%. Bureaucratic burdens of scientific research personnel have been reduced to create a good environment for them to devote themselves to research and make more high-quality scientific research achievements. 

If scientific and technological capabilities are strong, the country will be strong. The MOF will strengthen support of fiscal and tax policies and funds, optimize the structure of scientific research expenditure, promote the implementation of scientific research policies and ensure that science and technology, one of the country's most powerful weapons, can better serve the high-quality development and promote the building of a great modern socialist China in all respects. Thank you.