Xu Guanhua, minister of science and technology, made the remarks at the Report Meeting on the Achievements Gained in China's Reform, Opening Up and Modernization Drive Since the Fourth Plenum of the 13th Party Central Committee, which was held on October 9 at the Great Hall of the People.

Over the last 13 years, China's science and technology innovative capabilities have risen by a big margin. Xu said that since the 90s, input in science and technology has kept increasing, in 2001, input in the country's R&D was 96 billion yuan (US$11.59 billion), accounting for 1.0 percent of GDP, whereas in 1990, the two figures stood at 12.534 billion yuan (US$1.51 billion) and 0.68 percent respectively; at the same time, through implementing the 973 (March 1973) State Hi-tech Program, the 863 State Hi-tech Project, and a series of other hi-tech programs, a large number of innovative achievements have been created in many major fields. Generally, China's scientific and technological strengths have been placed in the front ranks of the developing countries.

Basic research and high and new technological studies are advancing side by side, and have achieved remarkable successes: China, as the only developing country which has taken part in the international human genome program, called the "lunar program" and has accomplished 1 percent of the procedural-surveying task with high efficiency and high quality, which has attracted the attention of the world; it has smoothly completed the frame chart of its super-class hybrid rice; the breakthrough made in key technology of the high-performance computer has given China a niche in the intensely competitive world computer field.

Xu pointed out that in the knowledge-oriented economic era, the focus of competition among various countries around the world is manifest not only in the discovery and creation of new knowledge, more importantly, it is also manifest in the conversion of research results into actual productive forces. Over the past 13 years, China's hi-tech industry, which has developed from small to big and from weak to strong, has become an important force boosting the country's national economic growth.

In the last 10 years, the output value of China's high-tech industry has grown from 300 billion yuan (US$36.2 billion) to 1.8 trillion yuan (US$217.4 billion), with average annual growth exceeding 20 percent, surpassing the average annual growth rate of the whole industry by more than 10 percentage points in the same period, making it the most vigorous part in the development of the national economy. In the composition of the national economy, the proportion of high-tech industry has risen from 1 percent 10 years ago to 15 percent at present.

Along with the development of science and technology, the contribution made by progress of science and technology to social and economic development has been on the increase. Xu remarked that scientific and technical advancement exerts an important, supporting role in transforming the traditional industry and promoting sustainable development.

Take agriculture as an example. Over the past two decades, although China's population has increased by several hundred million, the country's annual per-capita food supply has still increased from 300 kg to 400 kg (661 lb to 882 lb), this is attributable to the contribution made by the progress of agricultural science and technology. Over the past 10 years and more, China's agricultural new variety has been updated once every five years and it has brought about increased food production by over 10 percent each time.

Xu said the tremendous achievements gained in science and technology is closely related with China's correct and far-sighted science and technology development strategy. Over the past 13 years, China's science and technology have surged forward in close connection with the needs of national economic development and social progress. Targeted at closely linking the enhancement of innovative abilities for science and technology and the promotion of science and technology and economy, China has placed science and technology in a strategic position of priority development. Over the past 13 years, China has made historic breakthroughs in the structural reform of its science and technology which proceeded around the core issue of promoting the combination of science and technology with economy.

From 1989 to 1992, China reformed the money allocation system and expanded the technology market with commercialization of research results as the breakthrough point; between 1992 and 1998, taking "stabilizing one end, decontrolling one area" as the guideline, China carried out structural adjustment and the spinning-off surplus personnel; from 1999 up to the present, China has focused on strengthening the innovation of science and technology and promoting the industrialization of the achievements of science and technology and made fundamental change in the system of science academies and institutes.

Through creative practices over the past 10 years and more, particularly over the past three years, breakthrough progress has been made in liberating and developing science and technology as the primary productive forces, the combination of science with economy, and knowledge with capital has become closer, enterprises of a science and technology type, has emerged in large quantities, the basic role of the market has become increasingly prominent in the operation of science and technology and in the allocation of resources, the innovative enthusiasm of scientific and technological personnel has been notably enhanced.

Xu Guanhua gave an account on the achievements gained in the construction of the scientific and technological contingent, science popularization work, and international cooperation in science and technology.

Xu said in conclusion that during the 10th Five-year (2001-2005) Plan period, the Ministry of Science and Technology will strengthen cooperation with relevant departments, step up the organization and implementation of three major strategies-personnel, patent and technical standard, carry out major special projects of science and technology and strive to provide long-term reliable motive force for national economic development and social progress.

( October 21, 2002)