Govt, corporates lead China's big investments for top technologies to boost growth, innovation

China, including its major corporates, is investing big on research and development for breakthroughs in cutting-edge technologies, to not only make innovation integral to economic growth, but gain a global edge, with 3.08 trillion yuan ($420.9 billion) already allocated for R&D in 2022, up 10.1 percent year-on-year, according to the National Bureau of Statistics, and much more in the offing for the future.

The R&D expenditure of enterprises reached 2.39 trillion yuan in 2022, up 11 percent year-on-year, contributing 84 percent of the country's R&D growth, up 4.6 percentage points from the previous year.

Deng Zigang, a researcher of Southwest Jiaotong University in Chengdu, capital of Sichuan province, epitomizes China's recent thrust on R&D. Five years ago, Deng wanted to develop a vacuum-tube maglev. In the initial stages of executing his ambitious project, he targeted a 45-meter loop and a top speed of 50 kilometers per hour. But, some experts were skeptical. They, Deng recalled, said the eventual outcome of his research would be "a toy", not a serious transportation option.

Such attitudes savaged Deng's confidence, but he did not give up on his dream. Instead, he persisted despite not receiving much recognition for his efforts. Ultimately, his sustained focus on the frontier area paid off — he won the Xplorer Prize co-initiated by Ma Huateng, Tencent Chairman and CEO and founder of the Tencent Foundation, and a number of renowned scientists.

The prize, launched in 2019, encourages talented young scientists to concentrate on basic research and R&D of frontier technologies.

"It really meant a lot to me and our research team as we felt more empowered, more confident, and more motivated," Deng said, adding it is gratifying to see his area of specialization has now become a key focus of research both in China and abroad.

Over the past five years, Deng and his team have developed a high-speed maglev experimental loop in China, making improvements to the project continuously. Theirs is the world's first high-temperature superconductor vehicle test platform that can withstand speeds of up to 620 kilometers per hour, promising a new generation of transportation technology that could benefit not just China, but the entire world. It is an area where several countries and regions are striving for a breakthrough.

According to the NBS, China will scale up R&D budget by more than 7 percent annually during the 14th Five-Year Plan (2021-25) period. Consultancy McKinsey & Co said in a report that such a growth target will make China the world's largest spender on R&D.