R&D spending beats OECD for first time

By the Editorial Team · Thursday, October 1, 2026

China’s R&D spending reached 2.8% of GDP in 2025, surpassing the OECD average for the first time and marking a significant step in its drive for technological self-reliance. This increase supports Beijing’s focus on advancing strategic sectors like semiconductors, AI, and biotechnology while expanding education initiatives to cultivate talent for future innovation.

China’s research and development (R&D) spending as a percentage of gross domestic product (GDP) surpassed the average of Organisation for Economic Cooperation and Development (OECD) member countries for the first time, according to government announcements made on Tuesday. This milestone underscores Beijing’s ongoing push to enhance technological self-reliance amid escalating competition with the United States and other advanced economies.

In 2025, China’s R&D expenditure exceeded 3.92 trillion yuan (approximately HK$4.6 trillion), accounting for 2.8 percent of GDP. This figure slightly outpaced the OECD average, which was reported at 2.7 percent. Science and Technology Minister Yin Hejun highlighted the significance of these investments during a press conference, emphasizing the government’s commitment to strengthening basic scientific research and addressing national security concerns through technological innovation.

Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, observed that China’s investment levels have reached parity with those of developed nations, and he expects the proportion of GDP dedicated to R&D to continue rising. Wang emphasized the importance of improving the efficiency of research funding and increasing investment in foundational “zero-to-one” innovations—original breakthroughs that have the potential to reshape industries or create entirely new technologies.

China’s commitment to advancing strategic technologies is reflected in government plans to target critical sectors such as semiconductors, industrial machinery, and high-end instruments. Additional R&D support will be directed toward emerging fields including artificial intelligence (AI), quantum technology, biotechnology, and brain-computer interfaces, all of which are identified as priorities under the latest five-year plan.

Minister Yin described the current period as crucial for establishing China as a global science and technology leader. He underscored the necessity of harnessing the opportunities presented by ongoing scientific revolutions and industrial transformations to accelerate high-level technological self-sufficiency and stimulate new economic growth drivers.

Educational initiatives are also central to China’s innovation strategy. Yin pledged increased backing for young researchers and a stronger focus on interdisciplinary and emerging fields. Reinforcing this commitment, a letter from President Xi Jinping to Sichuan University encouraged leveraging its interdisciplinary strengths across humanities, sciences, engineering, and medicine to support national strategic goals.

The Ministry of Education recently announced plans to expand undergraduate enrollment by 76,000 places at top-tier universities between 2027 and 2030. The expansion aims to nurture talent in key areas such as AI, semiconductors, biomedicine, and new energy, further reinforcing China’s long-term ambitions to lead in technology and innovation.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.