China's R&D spending as share of GDP surpasses OECD average for first time
Quick Look
- China's research and development expenditure reached 3.92 trillion yuan ($584.8 billion) in 2025, accounting for 2.8% of GDP and exceeding the OECD average of 2.7%, according to official data.
- Officials say the trend reflects efforts to boost technological self-reliance amid global competition, with expectations of continued growth in innovation investment.
AI-generated summary
Why It Matters
China has been increasing its investment in research and development as part of its strategy to achieve technological self-reliance and reduce dependence on foreign technology amid rising global competition.
For the first time, China’s spending on research and development as a share of gross domestic product has surpassed the average for Organisation for Economic Cooperation and Development (OECD) members – a trend one analyst expects to continue as Beijing seeks to strengthen technological self-reliance amid intensifying global competition.
R&D expenditure exceeded 3.92 trillion yuan (US$584.8 billion) in 2025, accounting for 2.8 per cent of GDP, Science and Technology Minister Yin Hejun said at a press conference on Tuesday. The OECD average stood at 2.7 per cent for the year, the National Bureau of Statistics reported.
Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, said the achievement showed how China’s investment in innovation had reached a level comparable to that of developed economies. He expected the share of GDP devoted to R&D to keep rising, with a greater focus on optimising funding allocation and improving research efficiency.
“We must continuously increase the proportion of investment in basic research to build a solid foundation for ‘zero-to-one’ original breakthroughs,” Wang said, while ensuring that “large-scale R&D investments translate more efficiently into industrial competitiveness”.
What to Watch
AI outlook — possibilities, not facts
China's R&D expenditure as a share of GDP will continue to rise
Likely · Within months
China will focus on optimizing funding allocation and improving research efficiency
Likely · Within months
China will increase investment in basic research to support original breakthroughs
Likely · Within months
Open Questions
- What specific sectors will see increased R&D funding?
- How will China measure improvements in research efficiency?
- What policies will be implemented to optimize funding allocation?
