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SCIO press conference on fiscal revenue and expenditure in 2023

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CCTV:

As we know, scientific and technological innovation is the logical starting point and the key driver for high-quality development. My question is, what have national finances done to improve the allocation of innovation resources and build China's self-reliance and strength in science and technology? Also, could you share any new measures planned for 2024? Thank you.

Wang Dongwei:

Thanks for your question. I'll take this one. Implementing the innovation-driven development strategy and building high-level self-reliance and strength in science and technology requires the improvement of the new system for mobilizing resources nationwide to better allocate innovation resources, boost China's strength in strategic science and technology, and promote deeper integration of the innovation, industrial, capital, and talent chains . In recent years, national finances have prioritized science and technology expenditure. From 2018 to 2023, fiscal spending on science and technology increased by an annual average rate of 6.4% from 832.7 billion yuan to 1.06 trillion yuan. At the same time, we've been utilizing various policy tools such as tax incentives, government procurement, asset management, and fiscal financing to support scientific and technological innovation. In 2023, through a series of central government policies and strong fiscal support, we saw rapid progress in establishing a national laboratory system and constructing large-scale scientific facilities. We also witnessed the successful launch of the Shenzhou-17 spaceship, the debut commercial flight of the C919 large passenger airplane, and the constant emergence of innovative outcomes in fields like artificial intelligence, quantum technology, and biomanufacturing.

In 2024, finance departments will take more robust and effective measures to drive the construction of a modern industrial system led by scientific and technological innovation and develop new productive forces. I would like to elaborate on this from two perspectives.

First, in terms of policy orientation, we should focus on four "key areas." First is emphasizing the primary role of enterprises in innovation. We'll implement structural tax cuts and fee reductions with a focus on supporting technological innovation and the development of the manufacturing sector. We aim to leverage fiscal funds to catalyze significant investment in technology innovation from financial resources and private capital, encouraging the flow of innovation resources towards enterprises. Second, we will harness the power of demand to drive innovation. By capitalizing on our vast domestic market, we aim to significantly encourage the application and iteration of innovative outcomes. This includes implementing and refining policies of subsidy for insurance for the first use of major technological equipment and new materials, addressing initial application bottlenecks in a market-oriented manner. Third, we will be committed to enhancing the resilience and security of our industrial and supply chains. This involves integrating and optimizing related fiscal special projects, focusing on key industrial chains, and supporting technological breakthroughs in critical weak areas. We will implement fiscal policies to support innovative small and medium enterprises (SMEs) that use special and sophisticated technologies to produce novel and unique products , encouraging more companies to specialize in niche markets and pursue excellence and innovation. Fourth, we will focus on boosting the enthusiasm and creativity of scientific researchers. Two important pilot reforms in this area include supporting the advancement of salary system reforms in universities and research institutes and accelerating the reform of the ownership or long-term use rights of on-the-job inventions by scientific researchers. The goal is to fully stimulate the initiative and creativity of these researchers.

Second, in terms of the use of funds, we should advance reform of the mechanisms for the allocation and use of fiscal science and technology funds. In this regard, we need to achieve the "four strengthens." First, we need to strengthen our foundations. We will increase investment in basic research, applied basic research and cutting-edge research, and improve our capabilities in original innovation. Second, we need to strengthen our ability in tackling key problems. We will double our efforts to achieve breakthroughs in core technologies in key fields, thus gaining the high ground in the scientific and technological endeavor. Third, we need to strengthen our capabilities. We will focus on national laboratories, national research institutions, high-level research universities and leading scientific and technological enterprises to support the strengthening of national strategic scientific and technological capabilities. Fourth, we need to strengthen efficiency. Projects, funds, talents as well as base innovation resources will be coordinated so as to comprehensively strengthen performance management, and strive to improve the effectiveness of government research funds.

That's all from me. Thank you.

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