Part I  China's National S&T System

1. National S&T Management System

1.1 Organizational Chart
a. The President
b. The National People's Congress (NPC)
c. Chinese People's Political Consultative Conference (CPPCC)
d. The State Council
e. Vice Premier in Charge of S&T Work (Li Lanqing)
f. Science, Education, Culture and Health Committee
g. Science, Education, Culture and Health Committee
h. Commission of Science, Technology and Industry for National Defense
i. Ministry of Science and Technology (MOST)
j. Ministry of Education (MOE)
k. State Development Planning Commission (SDPC)
l. State Economic and Trade Commission (SETC)
m. Other Industrial Ministries and Commissions Under the State Council
n. National Natural Science Foundation of China (NSFC)
o. Chinese Academy of Sciences (CAS)
p. Chinese Academy of Engineering (CAE)
q. Chinese Association of Science and Technology (CAST)
r. Science and Technology Commissions under Provinces, Autonomous Regions and Municipalities
s. Science and Technology Department
t. Provincial Association for Science and Technology
u. Provincial-level Research Institutions
v. Science and Technology Commissions at Counties or Cities
w. Research Institutions under the Ministries and Commissions (Including Universities and Enterprises)
x. Research Institutions under CAS
y. Association for Science and Technology at Counties or Cities
z. Research Institutions and S&T Diffusion Institutions at Counties or Cities

1.2 Characteristics
China's S&T management system is basically a highly centralized structure, with stress on centralized control in governmental planning, strict organizational procedures and unified policy caliber, which is quite different from the pluralistic decentralized S&T management system of the United States or the centralized coordinated pattern of Japan.
With this kind of system, China's government has been placing the final management of S&T activities as well as relevant production activities and resources analysis under the responsibility of a special administrative agency, namely the Ministry of Science and Technology (MOST), while other governmental agencies are authorized to take the responsibilities for formulating and implementing corresponding policies or short-term projects. The organizational system of S&T management in China involves three tiers: top decision-making body, implementing and coordinating agencies, and numerous R&D institutions (such as universities, research institutes and enterprises). These three tiers are in an administrative hierarchy.

1.3 Functions of Major Departments and Agencies
1.3.1 Ministry of Science and Technology (MOST)
The Ministry of Science and Technology is a governmental agency specialized in the managing and coordinating of nation-wide S&T activities. Its main functions include:
l To investigate and formulate national overall S&T strategies, as well as guidelines, policies and regulations that foster S&T-based economic and social development; review major issues that use S&T to build China's economic and social development; study and identify major layouts and priorities for S&T development; promote the creating of national S&T innovation system and enhance national S&T innovation capability;
l To develop national medium- and long-term plans and annual plans for the civilian S&T development, including working out policies and measures for strengthening basic research and new/high-tech development, designing and organizing the implementation of major basic research program, high-tech R&D program, key technologies R&D program, S&T innovation program and S&T-based social development program;
l To strengthen new/high-tech commercialization, and development and diffusion of applied technologies; investigate rational deployment of S&T human resources, and propose policies that support taking full advantage of the roles of R&D personnel and creating favorable environment for the growth of innovative R&D talents;
l To review and formulate China?s guidelines and policies for its international S&T cooperation and exchanges.

1.3.2 Ministry of Education (MOE)
The Ministry of Education plays critical role in the production of S&T talents.

1.3.3 State Development Planning Commission (SDPC)
SDPC is established as a comprehensive agency under the State Council responsible for the management of national economy and social development. Its main responsibilities include: investigating and formulating national economic and social development strategies, as well as medium- and long-term and annual development plans; proposing national regulation and control targets and policies that support overall balance, growth rate and structure readjustment; and working towards overall balances and coordination of major proportionate relationships among total quantity indicators such as aggregate social demand and supply. In addition, SDPC has particular S&T management roles, that is, to ensure balanced developments among social enterprises (such as S&T, education, culture and health), national defense construction and national overall economic and social development, to promote the commercialization of major S&T results, to propose policies that support the coordinated and mutually-enhancing economic and social development, and coordinate major issues emerging in the development of social enterprises.

1.3.4 State Economic and Trade Commission (SETC)
SETC is a governmental agency in charge of macro-economic regulations. As all the activities of industrial enterprises are placed under its supervision, SETC is also designated with major S&T management functions as follows: to study the guidelines and policies for enterprise technological progress, and guide the technical innovation, introduction of technology, the localization of key equipment as well as the research and development of key technology and equipment; to guide the nation?s effort for the conservation and integrated utilization of resources, and organize and coordinate industrial environmental protection and the development of the environmental protection industry; and to lay out nation-wide technological upgrading of enterprises.

1.3.5 National Natural Science Foundation of China (NSFC)
NSFC was established in February 1986 to strengthen China's basic research through internationally accepted mechanism. In accordance with the Government?s guiding principles, policies and plans for national S&T development, NSFC has built itself with an operating system of natural science fund in line with the socialist market economy. NSFC is designated to employ the National Natural Science Fund allocated by the state treasury to financially support basic research and some applied studies in the fields of natural sciences, identify and foster S&T talents, and promote S&T and economic and social development by exploiting the orientating and coordinating role of the National Natural Science Fund.
In addition to the management of the National Natural Science Fund, NSFC assists MOST with formulating national guidelines, policies and development plans for basic research. NSFC develops cooperative relations with governmental S&T departments, science foundations and relevant scientific organizations in other countries and regions, and conducts active international scientific cooperation and exchanges.

1.3.6 Chinese Academy of Sciences (CAS)
Founded in 1949, CAS is the country's supreme academic institution and comprehensive R&D organization in natural sciences and new/high technologies. It currently has a total professional staff of over 60,000. Under the Academy there are 5 academic divisions, 123 research institutes, over 400 S&T enterprises, 3 universities and 13 branches out of Beijing.

1.3.7 Chinese Association for Science and Technology (CAST)
CAST is a non-governmental organization for Chinese S&T professionals, and a major social force for the advancement of the nation's S&T development. Founded in September 1958, the Association is composed of 168 national societies, 31 provincial S&T associations and extensive grass root S&T bodies that represent different disciplines in natural sciences, technological sciences and engineering technologies or aim at promoting the development and popularization of science and technology in China. CAST does this by:
l Organizing academic exchanges to enliven academic thinking and promote disciplinary development;
l Popularizing scientific knowledge, defending the prestige of science, propagating scientific thinking and methodologies, diffusing advanced technologies, organizing youth S&T education activities and improving the scientific literacy of the whole nation;
l Reflecting the views and demands of S&T professionals and safeguarding their legitimate rights and interests; engaging S&T personnel in the formulation of national S&T policies and regulations and in the political consultations, decision making and democratic supervision of national affairs;
l Recognizing and rewarding distinguished S&T personnel, and identifying and recommending outstanding talents;
l Conducting scientific assessments and consulting services, making policy recommendations, and promoting the transformation of S&T results;
l Organizing non-governmental international S&T exchanges, and developing interactions with foreign S&T organizations and personnel;
l Organizing continued education and training;
l Running good causes in agreement with the objectives of CAST.


2. National S&T Planning System

The S&T planning system usually consists of the following components: current status of S&T development, guidelines and basic principles, objectives and missions, priority fields and areas, S&T system reform, personnel training, and supporting conditions and measures. Starting from 1956, China has worked out irregularly its long range S&T plans or national 5-year plans for S&T development.
The newly-formulated S&T Development Outline for the 10th 5-year Plan Period put forward the following general principles that China's S&T enterprise in the 10th 5-year plan and further period of time shall adhere to:
l Pooling the nation's limited S&T resources only on those things having higher rankings while leaving those with lower rankings undone;
l Organizing intensive R&D in key fields while keeping abreast of int?l developments in all S&T fields;
l Developing high technologies and facilitating commercialization;
l Enhancing national sustainable innovation capability, and achieving frog-leap development of technology.
In addition, the Outline defined the concrete S&T development goals for the 10th 5-year plan period as follows:
a. To greatly enhance China's industrial technological levels and international competitiveness, making China?s agricultural, industrial and service industries reach the levels of developed nations of the mid-1990s in major technological fields, with some ranking among the world advanced.
b. To work towards making some breakthroughs in basic research and strategic high technologies research. By 2005, some major scientific disciplines and strategic high technologies fields shall approach or reach the frontiers of the world and achieve groundbreaking S&T results of significant international implications.
c. To provide S&T support for the coordinated development of population, resources and the environment.
d. To further remarkable increase of national S&T expenditures. By 2005, the percentage of the nation's total R&D expenditures as GDP shall rise to 1.5%, industrial R&D spending shall exceed 50% in the nation's total. For high-tech firms, R&D spending shall take over 5% of their annual sales.
e. To ensure S&T workforce to meet the demand. By 2005, the full time scientists and engineers engaged in R&D shall reach 900,000.
f. To gradually improve S&T infrastructures.
To accomplish the above mentioned goals, the strategic deployments have been made on two areas:
a. To spur industrial technological upgrading: with industrial enterprises as the primary performer of technology innovations, priorities will be given to addressing critical industrial technologies, promoting the development of new/high-tech industries, transforming traditional industries with high/new technologies, and stimulating industrial technological upgrading and restructuring;
b. To enhance national sustainable S&T innovation capability: Universities and research institutions shall play active parts in conducting strategic high technology research and original basic research, so as to raise national sustainable S&T innovation capacity and realize frog-leaping development in technological fields where China has relative advantages or in major fields of strategic importance.
Meanwhile, the Outline set out the following main tasks:
a. To reinforce research on and development of critical generic technologies so as to provide support for the nation's strategic economic restructuring and sustainable development;
b. To enhance sustainable S&T innovation capability and realize frog-leaping development;
c. To improve independent S&T innovation capability in field of national defense so as to underpin our national security;
d. To deepen the reform of S&T system and establish national innovation system.


3. National S&T Programs System

The national S&T programs refer to R&D activities and other associated S&T activities organized in accordance with the national S&T development plan and strategies. Supported by the national financial appropriations or regulated or guided by the nation's macro policies, they are organized for implementation by governmental agencies. National S&T programs are effective means by which government addresses major S&T issues faced in the nation's social and economic development and realizes the rational distribution of S&T resources.
National S&T program system includes various programs, involving R&D project program, S&T capability building, S&T supporting environments building, S&T base construction and S&T services, etc.

3.1 Current national S&T programs
Under the previous planned economy system, China used to work out a wide range of programs, including S&T programs. Major S&T programs that are now still running are:


·Key technologies R&D program ·National new products program
·"863" program ·Innovation foundation for small and medium-sized S&T firms
·National basic research priorities program ·National S&T industries program
·Spark program ·State key laboratories
·Torch program ·National mega projects of scientific research
·National S&T achievements spreading program ·National engineering research centers

3.2 New S&T programs system
During the 10th five-year plan period, China will allocate its S&T resources according to its new S&T programs system (called "3+2"). The "3+2" means three basic core programs involving basic research, high technologies research and key technologies R&D, plus two programs concerning R&D conditions construction and S&T industrialization environment construction. The detailed descriptions of this new system are as follows:
3.2.1 National Basic Research Priorities Program
The Program is mainly composed of three components: National Basic Research Priorities Development Program, Climbing Program, and Major Programs of National Natural Science Fund. The three programs have their respective focus while interfaced with each other.
l "National Basic Research Priorities Development Program", or "973 Program" for short, was launched in 1997 to strengthen basic research and other relevant S&T activities in the country. Managed by MOST, the Program mainly aims at addressing major key issues relating to national demands for future development such as national economic restructuring and high tech development, informationalization of the economy and society, people's life quality and health improvement, natural resources and their efficient utilization, ecological environment and coordinated social development, and the west development. It is focused on conducting multi-disciplinary, comprehensive basic research that are of visions of future, scientific frontiers-oriented, and capable of addressing important and critical scientific issues.
During the 10th five-year plan period, emphases will be on the research into genomics, informatics, nano science, ecology and earth science in such fields as agriculture, energy, information, resources and environment, population and health and materials, as well as studies of major scientific issues that may bring about important stimulating roles and help form new future technologies and industrial growth points. Its goal is to generate new discoveries, new theories, new technologies and new inventions so as to provide necessary theoretical evidences and scientific support for materializing phase III strategic targets of China's economic and social development.
l Climbing Program created in 1991 and managed by MOST, the Program mainly focuses on frontier research into major key scientific issues in the nation's S&T development.
l Major Programs of National Natural Science Fund. Started from 1985 and managed by NSFC, the Programs focus on supporting interdisciplinary frontier research into major key issues in scientific disciplines. The Fund has served as a major source for the Government's supporting basic scientific research, with a total budget of 1.29 billion yuan in 2000.
3.2.2 National High-Tech R&D program ("863" Program)
National High-Tech R&D Program, or 863 Program, is a Government-led high- tech R&D initiative of strategic significance to the nation's long-term development. The Program aims at pooling small number of excellent researchers to conduct frontier-oriented R&D in selected high-tech fields, so as to narrow China's gaps with developed nations, stimulate its S&T advances in relevant fields, nurture new generation high-caliber technological talents, and create foundations for its emerging of high tech industries, the future economic and social development and national security.
"863" Program has identified 8 priority fields: biotechnology, space technology, information technology, laser technology, automation technology, energy technology, new materials and marine technology. Apart from space technology being a non-civilian field, other 7 technologies are all in civic fields, involving 15 subjects and 5 special topics. MOST is responsible for the implementation of 5 fields, including biotechnology, information technology, automation technology, energy technology and new materials. The State Oceanic Administration is in charge of marine technology.
In addition, "863" Program has set up projects for exploring new ideas and concepts of high technologies. The purposes are to provide new theories and techniques for accomplishing the objectives of the Program, to address high technology R&D goals and spur disciplinary development in the priority fields, and provide scientific reserves for the development of high technologies.
Over 15 years' operating, "863" Program has altogether invested 5.7 billion yuan and generated new additional output value of 56 billion yuan on a cumulative basis, with an input-output ratio up to 1 to 10. The implementation of "863" program has opened up new high-tech industrial growth points while providing technical support for the transformation of traditional industries, producing indirect economic benefits as much as over 200 billion yuan. A total of more than 40,000 researchers in 200-odd research institutes and more than 100 universities have been involved in the projects of ?863? Program.

3.2.3 National Key Technologies R&D Program
Launched in 1982, the National Key Technologies R&D Program is China's first national S&T program. Its aims are, proceeding from major demands of national economic and social sustainable development, and with fostering industrial technology upgrading and addressing major technological issues of public interests as outcome goals, to pool financial and human resources to the technologies that are in urgent need to the nation's industrial upgrading and sustained social development. It achieves these by organizing intensive research on critical and generic technologies, innovation of imported technologies, and application and commercialization of new/high technologies.
The Program has defined the following four specific priority areas for the 10th five-year plan period: a. addressing critical agricultural technologies that have remarkable roles in advancing agricultural technologies and increasing farmers' income; b. addressing critical industrial technologies and their associated supporting technologies that have strong driving roles for industrial upgrading, and are broadly-covered and highly-related; c. addressing critical technologies that have immediate impacts to the coordinated development of population, resources and the environment, and to national security; d. nurturing competent R&D workforce, and establishing a cluster of technology innovation bases of international standing.

3.2.4 Construction of R&D infrastructures
----- Major international scientific cooperation programs
----- National engineering technological research centers
----- National key labs
----- National major scientific projects
----- Basic S&T activities
----- Large scientific instruments resources sharing
----- Productivity promotion centers
----- Sustainable development labs
----- University S&T parks
----- National publication fund for S&T academic works

3.2.5 Construction of S&T industrialization environment
----- Torch Program
----- S&T Achievements Spreading Program
----- National New Products Program
----- Technical Innovation Fund for Small and Medium-sized S&T Firms
----- Action Plan for Thriving Trade with S&T
The high-tech product exports of 15 major cities in China were given in the following Table.
China's high-tech product exports in 1999 by city
City High-tech product exports in 1999 (USD 100 million) Annual Growth(%)
Beijing 11.03 30.4
Tianjin 16.31 24.2
Shanghai 33.04 46.8
Chongqing 0.28 -6.7
Shenyang 0.86 62.3
Dalian 6.27 25.1
Qingdao 2.28 21.3
Wuhan 0.80 35.6
Xi'an 0.37 -17.8
Nanjing 3.24 82.0
Suzhou 9.98 35.9
Xiamen 5.49 29.2
Guangzhou 3.37 -12.2
Shenzhen 59.90 8.0
Chengdu 0.99 296.0

Part II  China's S&T Policies

Strategically, China's overall S&T activities are organized into three character of work: basic research, applied research, and development. China's S&T policies are formulated to mainly serve these three fields in two major categories: science policy and technology policy, supplemented with other relevant policies such as policies on the transformation of S&T achievements, S&T management system reform, IP protections and S&T awards. Science policy is formulated to guide basic research, which provides original sources and backup supporting for China's S&T and economic development. Technology policy is directed towards applied research and experimental development. It is an important basis for the Government's formulating S&T and economic and social development plans, as well as powerful means for the nation's macro guiding and regulating economic activities.


1. Science policy

China's science policy is formulated to guide basic research. Basic research is an important strategic component in China's S&T enterprise. Along with the approaching of knowledge economy, basic research will be increasingly important in serving as the precursor and source of new/high technology.

1.1 China's basic science policy
Proceeding from the long-term needs of social and economic development, with a vision beneficial to the entire S&T enterprise, basic research shall be organized and reinforced with stressed priorities under the principle "Pooling the nation's limited S&T resources only on those things having higher rankings while leaving those with lower rankings undone".

1.2 Funding pattern of basic research
State program appropriations have always provided the majority of funds used for basic research, mainly through the National Basic Research Priorities Program which include several component programs such as "973" Program, Climbing Program and National Natural Science Fund Programs.
In addition, the Ministry of Education (its special research fund for doctorate-awarding universities) and localities (their natural science fund programs, funds for supporting young scholars, and key labs funding programs) also provide support for basic research. Numerous provinces and municipalities, such as Beijing, Shanghai, Tianjin, Jiangsu, Guangdong, Yunnan and Hunan, have allocated as much as 100 million yuan for basic research.

1.3 Priority disciplines of national basic research
The State provides support for basic research in two priority areas (based on the Climbing Program): a. research activities aimed at exploring and understanding objective laws of the natural world: mathematics, physics, chemistry, astronomy, earth science, biology, basic medical sciences, basic agronomy; b. research activities aimed at promoting social progress and economic development: basic research projects in fields of technologies and engineering.
Since its launch in 1997, the National Basic Research Priority Development Program ("973" Program for short) has organized 87 projects, of which 11 are in field of agriculture, 10 energy, 1 information, 15 resources and environment, 12 population and health, 12 materials, 16 science frontiers, with an average fund of Rmb 20 to 30 million for a project. 108 chief scientists were recruited for these projects.

1.4 Nurture of excellent scientific talents
The Chinese Government has been giving great attention to talents production in basic research. Just for this purpose, it has established Yangtze River Scholars Program, CAS Hundred Talents Program, NSFC National Distinguished Young Scholars Program, Truth Seeking Award, Special Research Fund for University's Doctorate-awarding Units, and Fund for Overseas Chinese Scholars.
For example, National Basic Research Priorities Development Program (or "973" Program) has gathered a number of excellent talents, especially young and middle-aged talents, to conduct basic research addressing national objectives. It also attracted numerous oversea Chinese scholars to serve for the country, setting a stage for them to render contributions to their homeland. Over the past three years, there have been 33 distinguished young scholars under 45 recruited as chief scientists (three of them returned from abroad). 365 young scientists who were awarded with Yangtze River Scholars Program, CAS Hundred Talents Program, Distinguished Young Scholars Program and the Truth Seeking Award participated in projects under the "973" Program. Climbing Program also made a lot in this regard, which turned out 798 postgraduate students in 1999.

1.5 National major initiatives for enhancing basic research
l In 1998 when the governmental system reform was initiated, MOST created its basic research department so as to strengthen its guidance and management of the nationwide basic research.
l In 1999 CAS launched its knowledge innovation program.
l In 2000 China's total governmental fund for basic research exceeded 5 billion yuan.


2. Technology policy

2.1 Keynote of technology policy
Developing high technologies, realizing commercialization, and promoting technology innovations are China's national technology strategy and keynote of technology policy at current stage.

2.2 Main compositions of technology policy
------High tech development policy
By taking into account the world high technology development trends and China?s own needs and realistic possibilities, the national "863" program has selected 8 priority fields. They are: biotechnology, space technology, information technology, laser technology, automation technology, energy technology, new materials and marine technology.
------Technology innovation policy
Technology innovation policy represents a major component of China's technology policy. Technology innovation is an important precondition for developing high technologies and realizing commercialization. China is now constructing its national innovation system favoring technology innovation, and seeking to make industrial enterprises the primary performer of technology innovation through its S&T system reform. Built upon the special legacies left by the old S&T system, China's current technology innovation policy consists of four major aspects:
l Policy for S&T system reform;
l Policy for enterprises? technology innovation and high-tech commercialization;
l Fiscal, banking, and tax policies concerning technology innovation;
l Regulatory policy on S&T awards.
------Other compositions of technology policy
Torch Program, new/high-tech firm identifying policy, policy for new/high-tech industrial development zones, policy for encouraging the development of software and IC industries, and other relevant policies are also indispensable parts in China's technology policy.


3. Policy on transformation of S&T results

Due to historical reasons, China's S&T activities have long been disconnected from its industrial operations and market demands, and S&T results usually stagnated in the lab process without further transformation and applications. In the meanwhile, industrial technologies have become outdated with weak technology innovation capability. As a result, in China, there exists serious problem of the so-called 'two separate skins for S&T and economy'. To address the problem, China has worked out a series of new regulations and policies and constantly readjusted relevant policies so as to promote the transformation and applications of S&T results.
Laws: Science and Technology Progress Law, Law on Promoting the Transformation of S&T Results
National policy documents: Regulations on Promoting the Transformation of S&T Results issued by State Council (March 1999), Circular on Capitalization of the New/High-Tech Achievement as Stock (August 1999).
The State encourages research institutes, universities, and their researchers to transfer their new/high-tech results in different forms and create high-tech firms. The share of the evaluated high-tech achievement could account for as high as 36% of the firm's registered capital. Researcher individuals get no less than 20% of the net revenues of the technology transfer as rewards to their contributions.


4. Intellectual Property Protections

The policy relating to IP ownership of S&T results may serve as an important leverage for ensuring concerned parties' technical and economic interests in R&D and transfer of S&T results. In China, IP protection system involves two major types: one is the rights for creative results, including patent rights, IC rights, new plant varieties rights, proprietary technologies rights and copyrights; and the other is rights for identifiable marks such as trademark, trade brand/business name, and other identification markings restricting unfair competition. China's patent law is enacted to protect three types of patents: inventions, utility models and designs.
In the first half of 2001, MOST issued its "Suggestions on Enhancing the Protection and Management of S&T-related Intellectual Properties", which proposes that effective measures be adopted to steadily readjust the policies on the IP ownership of S&T results. Except those S&T results that relate to vital national interests, national security and public interests, the IP rights of S&T results made in execution of the research projects under national S&T programs can be owned by the entity which made the results.
On July 1, 2001, the third revised version of Chinese Patent Law came into effect. The new version made extensive modifications that involve 36 Articles in 6 areas: 1) it clarifies that in applying for and granting a patent, the state-owned entities enjoy the same rights and obligations as that of economic entities under other ownership; 2) it makes reasonable definition on a service invention-creation and legally provides that the inventor or creator of the service invention-creation shall be financially compensated; 3) it improves the judicial and administrative operations in the patent field and continues the mode of "two channels with coordinated operation" by judicial and administrative authorities for patent affairs so as to further enhance protection for patent rights; 4) it simplifies and improves the patent approval and maintenance procedures, and safeguards the legal interests of the interested parties; 5) the revision has made China's Patent Law in line with the terms of TRIPS and thus created more favorable patent-related legal environment for China's accession to WTO; 6) patent approval and management agencies are set with explicit requirements, so as to build up a professional patent contingent who should strive to be hard-working, uncorrupted, down-to-earth and efficient.  


5. Policy for Research Institutions Reform

Research institution reform constitutes a component of China's S&T system reform.
Historically, China's public research institutions have been supported entirely by the Government in the form of undertaking expenditures. No matter whether they are engaged in basic research or industry-oriented research, they are all be identified as public institutions that enjoy total budget funded by the Government. Undoubtedly, such S&T system has obvious defects, and China's government has recognized that and is taking effective measures to make changes.
At present, China's S&T system reform focuses on the restructuring of public research institutions. The restructuring has been implemented in three phases:
l Restructuring 242 industry-oriented research institutions;
l Restructuring 134 research institutions affiliated to different governmental industrial departments;
l Restructuring 265 research institutions of public goods.


6. S&T Awarding Policy

6.1 Nation-level S&T awards
There are following five awards.
a. Top National S&T Award
The award will be entitled to individuals who have made major breakthroughs at current S&T frontiers, or made outstanding contributions to S&T developments, or created huge economic and social benefits in the course of S&T innovation, S&T results transformation and high-tech industrialization. Created in 1999 as the top S&T award in the country, it is given to no more than two recipients each year, with a monetary prize of 5 million yuan for each. The President of the country will personally undersign and confer the certificate and bonus. Prof. Wu Wenjun and Prof. Yuan Longping are the winners for the first 2000 Top National S&T Award.
b. National Natural Science Award
The Award is given to Chinese citizens who have made major scientific discoveries by revealing natural phenomena, characteristics or laws in basic research or applied basic research.
c. National Technology Invention Award
The Award recognizes the citizens who have achieved major technical inventions in products, techniques, materials and associated systems with their S&T knowledge.
d. National S&T Progress Award
The Award is given to the citizens or organizations who have rendered outstanding contributions to the application and diffusion of advanced S&T results, or the completion of major S&T programs and projects. The award is sub-divided into technical development award, basic techniques award and major project award.
(Note: the preceding b. c. and d. only offer first and second prizes)
e. International S&T Cooperation Award
The Award seeks to acknowledge foreign experts or organizations who have made major contributions to the development of China's science and technology enterprise. Established in 1992 as honorable prize, the Award has been presented by the State Council since 1995. By 1998 there had been 29 foreign experts who won the Award.

6.2 Provincial-level S&T awards
Provinces, autonomous regions and municipalities directly under the Central Government may establish, by different categories, S&T awards to recognize individuals or organizations who have made major S&T results or other outstanding contributions in scientific research, technical innovation and development, diffusion and application of advanced S&T results, and new/high-tech commercialization. The awards are financially supported by local governments.

6.3 Non-governmentally funded awards
The State encourages the establishment of S&T awards by non-governmental resources. Companies, institutional organizations, social groups, and other non-governmental organizations and individuals, domestic or abroad, are welcome to create permanent S&T awards with non-governmental financial funds or self-raised funds, to support China's S&T enterprise.
There exist influential non-governmentally funded S&T awards in the country, including He Liang-He Li Foundation S&T Award, China Auto Industry S&T Advance Award, Li Siguang Geology Award, etc.


7. Major S&T Progresses Achieved under the Guidance of China's S&T Policies

Due to appropriate S&T policies at different historical stages, China's S&T enterprise has witnessed vigorous development. Numerous significant S&T results have been made in different fields, and many have reached or approached internationally advanced levels.
------S&T enterprise
Over the past five decades since the founding of the People's Republic of China, China's S&T enterprise has witnessed fast development, with rapidly enhanced S&T capacity and world?class results. When the New China was founded, there were less than 50,000 S&T personnel, with less than 500 scientific researchers, and only 30-odd research institutions in the whole country. By 1998, however, China's S&T personnel have increased to 2.814 million in number, of whom scientists and engineers numbered 1.49 million. There were 21,663 scientific research and technical development institutions in the country, among them were 7,496 governmental R&D institutions at county level or above, 3,241 university research institutions, and 10,926 research institutions in large and medium-sized industrial enterprises. In the same year, the nation's total S&T expenditures went up to 112.85 billion yuan with per capita average increase from 33.5 in 1991 to 90.4 yuan. The national total R&D expenditures rose to 55.1 billion yuan, 3.2 times of that in 1991. Since the reform and opening up, China?s S&T input by the Government has increased at an average annual growth of 11.2%.

------S&T results
China has reached or approached the internationally advanced level in some sophisticated S&T fields such as atomic energy technology, space technology, high energy physics, biology, computer science and technology, and telecommunication technology.
In the 1960s, China successfully launched its first atomic bomb and hydrogen bomb, which attracted worldwide attention.
In the 1970s, China became the fourth country following the US, Russia and France who has the technology to launch multiple satellites with a single carrier rocket.
In the 1980s, China successfully constructed the Beijing Electron-Positron Collider (BEPC), and Chinese scientists have done experiments with the facility and achieved a lot of world-class research results; During the 1990s, in May 1995, Dawning 1000 massively parallel computer was developed. It hallmarked that China has been among leading countries in massively parallel processing technology; Submarine-launched missiles, intercontinental carrier rockets, Long-march II series high-thrust rockets were launched, and Galaxy supercomputer was developed ; In biotechnology field, bilinear inter-subspecies hybrid rice was cultivated, whose yield is 5% higher over the current hybrid rice. Mass production of this bilinear rice has raised China's grain output significantly; In information technology field, handwritten Chinese character library with 4 million character fonts was established, and in field of automation, neural network system was developed with a reduction ratio of 40 for color images; In energy technology field, 2000-kw fuel magneto-hydrodynamic generating set was set up; In new materials field, research into some new materials such as artificial crystal materials and metallic composites for space application made encouraging progress as well; CIMS has found wide application across the country.

------"863" Program
After 15 years' operation "863" Program has made a lot of research results of internationally advanced level, addressed many critical technologies, and thus narrowed China's gaps against the world advanced level, nurtured high-tech industrial growth points, greatly stimulated the development of the country's high technologies and associated industries, and provided high-tech support for the transformation of traditional industries.
According to incomplete statistics, as of 2001, the Program has identified 230 dedicated research topics in its 6 civilian areas, and financed nearly 5,200 projects. Under the Program, more than 2000 patents have been granted at home and abroad, 47,000 papers published, newly added industrial output values amounted to 56 billion yuan and indirect economic benefits 200 billion yuan on a cumulative basis. The Program has created 25 R&D centers, labs and pilot lines such as CIMS experimental engineering research center, and over 50 bases for industrialization of research results. They have become major venues for China's high-tech research, interdisciplinary R&D, talents production, international exchanges and cooperation, unit technology experiments and integration, and target products development.
In those high-tech fields identified as priorities of "863" Program, China has remarkably narrowed its overall gaps against the advanced world level. 60% of the technologies started from scratch, and now have reached or approached the internationally advanced level. 25% remain behind the advanced world level, though they have seen great progresses over their original basis.