China's Central SOEs Double Basic Research Spending to 102.4 Billion Yuan by 2025
Updated
Updated · OpenGov Asia · May 29
China's Central SOEs Double Basic Research Spending to 102.4 Billion Yuan by 2025
3 articles · Updated · OpenGov Asia · May 29
Summary
102.4 billion yuan in 2025 basic-research spending by China’s central SOEs was up from 56.5 billion yuan in 2021, according to SASAC data released after a State Council meeting.
9.4% of total R&D now goes to basic research, up from 6% over the 2021-2025 plan period, signaling a stronger shift toward early-stage science rather than near-term commercial projects.
20 central SOEs have partnered with national laboratories on basic and frontier research, with joint R&D institutions set up in areas including new power systems, artificial intelligence and quantum communication.
By 2030, SASAC wants central SOEs to build a structured basic-research system linking industry, universities and research bodies; by 2035, it aims for a more complete system with stronger original innovation capacity.
Despite massive state investment, why does China still rely on foreign tech for its most advanced semiconductors and aircraft?
How will China's tech self-reliance goal fracture global supply chains and the future of open scientific research?
Can Western market-driven innovation outpace China's state-directed push for supremacy in AI and quantum computing?
China Overtakes U.S. in R&D Investment: How State-Owned Enterprises Are Reshaping Global Innovation
Overview
Between 2021 and 2025, China rapidly increased its research and development (R&D) investment, growing over 14% annually since 2004. In 2024, China surpassed the United States by investing $1.03 trillion in R&D, with its R&D intensity reaching 2.7% of GDP. This surge was driven by central state-owned enterprises (SOEs), which consistently invested over 1 trillion yuan each year and reached 1.1 trillion yuan in 2025. The state-led research model, powered by these SOEs, has positioned China as a global leader in science and technology, marking a major shift in the international innovation landscape.