In May 1995, the Government of China announced the "Decision of the Central Committee of the Chinese Communist Party and the State Council on Accelerating Scientific and Technological Progress", held a national conference on science and technology, and decided to implement the strategy of revitalizing the country through science and education.

     Revitalizing the country through science and education is meant to carry forward fully the thinking that science and technology are the foremost productive forces, to treat education as the foundation, to place science and technology and education in a prominent position in economic and social development, to enhance the nation's science and technology capability and its ability to convert such capability into real productivity, to improve the S & T and cultural quality of the whole nation, to shift economic construction onto the track of depending on scientific and technological progress and enhanced labor performance, so as to speed up the realization the nation's prosperity and strength.

     The Guidelines for Science and Technology Work
     
     "Science and technology constitute the foremost productive forces". Under this guiding principle, economic development must rely on science and technology while science and technology must be geared to economic development. Efforts are called for to bring economic development onto the track of relying on scientific and technological progress and enhanced labor performance, and to scale the heights of science and technology.
 
     Basic Principles for S & T Work
     
     Economic and social development should be driven primarily by science and technology development and be assigned with primary tasks of overcoming stumbling blocks encountered in economic and social development. The organic integration of science and technology and the economy should find expressions in formulation of strategic targets, policies, system, and plans.

     Science and technology development should be energized by the reform while the restructuring of the science and technology management system should be deepned in the course of development, Under the macroscopic control by the Government, market mechanism should be given full play in promoting scientific and technological progress.

     Remain committed to combining independent research and development and the introduction of advanced foreign technologies and vigorously pursue the translation of scientific and technological results into real productivity.

     Maintain support for the integration of both long term and near term objectives and formulate rational plans for technology development and diffusion and for applied research and basic research activities.

     In the light of the world science and technology development trends and China's own situation, scientific and technological undertakings should adhere to the principle of limited objectives, well defined priorities, concentrating on attacking the key problems with concerted efforts, and daring to innovate.

     Respect knowledge, respect talent, and create an environment favourable for people's exhaustive playing of their roles and cultivating and bringing up new talent. Academic democracy should be truly practised in science and technology development and the democratic and scientific spirit should be rooted in the decision-making process for addressing major issues.

     Stick to the combination of professional research and development with popular scientific and technological activities, the combination of research and development with popularization of scientific and technical knowledge, and the integration of science and technology with education.
 
     Main Science and Technology Policy
     
     In order to exercise reinforced leadership over scientific and technological endeavors, the State must strive to put in place a scientific, democratic, and

     institutionalized decision-making process so as to provide an environment that is conducive to the advancement of science and technology and the execution of major national S 8r T activities.

     The State should encourage its citizens and entities to engage in scientific research, technology development, inventions, and other creative activities, advocate and support effective and timely application of S & T achievements to production, and provide legal protection for intellectual property rights so that inventors' lawful rights and interests are not infringed upon.

     The State must have guaranteed funding earmarked for key research areas and projects while encouraging greater public input in science and technology by creating an S & T investment pool absorbing government appropriations, funds raised by enterprises and the public, loans from financial institutions, as well as foreign funds. Economic levers should be employed to set the direction for and promote S 8c T development.

     Advocate the creation of a social climate of appreciating knowledge and respecting talent; develop a democratic style of work to ensure academic freedom; encourage exploratory and innovative activities; and give ample scope to the ability of scientific and technical personnel.

     While developing scientific and technological capabilities primarily on our indigenous efforts, adequate attention should also be assigned to the acquisition and assimilation of foreign technology. On the basis of equality and mutual benefit, a significantly greater level of international S & T cooperation and exchange through official, non-governmental, bilateral and multilateral channels should be vigorously assumed.

     Efforts are under way to put together a comprehensive S~T legal system by strengthening legislation and enhancing the public awareness of legal work with respect to science and technology and protecting intellectual property rights.
 
     The objectives towards the year 2000
     
     To basically put in place a S & T system that is in keeping with the socialist market economy and the inherent laws of science and technology development; to achieve major advances in industrial and agricultural scientific research and technological development, in basic research, and in high technology research and development; to markedly increase the contribution of scientific and technological progress to economic growth; and to basically bring economic and social development onto the track of relying on scientific and technological progress and improved labor performance.

     The strategic objectives towards the year 2010 are
     
     To solidify and perfect the newly established S & T system and realize an organic integration of science and technology with the economy; to train and turn out a highly qualified scientific and technological contingent and markedly improve the nation's S&T and cultural quality; to bring our S & T capacity in important disciplines and some high technology fields to or near the world advanced levels; to drastically increase the ability to engage in independent innovation and come to grips with critical technologies and systems design technology in major industries; to enable our production technologies in major areas to reach or approach the level of the developed countries in early next century; and to lay a solid foundation for building the country into a modern, power socialist state.

     China's laws and regulations for protecting intellectual property rights

     Term of law and regulation Time of Enactment

     1. The Trademark Law of the People's Republic of China Mar. 1, 1983

     (Amendment) July 1, 1993

     2. The Patent Law of the People's Republic of China Apr. l, 1985

     (Amendment) Jan. 1, 1993

     3. The Technology Contract Law of the People's Republic of China Nov. 1, 1987

     4. The Copyright Law of the People's Republic of China June 1, 1991

     5. The Regulations of the People's Republic of China for the Protection of

     Computer Software Oct. 1, 1991

     6. The Regulations Regarding the Implementation of International Treaty on

     Copyright Sept. 30,1992

     7. The Regulations for the Administrative Protection of Agricultural Chemical

     Products Jan. 1, 1993

     8. The Regulations for the Administrative Protection of Pharmaceuticals Jan. 1, 1993

     9. Supplementary Provisions of the Standing Committee of the National People's

     Congress for the Punishment of Crimes of Counterfeiting Registered Trademarks

     July 1, 1993

     10.Law of the People's Republic of China on Science and Technology Progress

     Oct. 1, 1993

     11.The Law of the People's Republic of China for Countering Unfair

     Competitions Dec. 1, 1993

     l2.Decision made by the Standing Committee of the National People's

     Congress on Punishing the Copyright Infringement Crimes July 5, 1994

     13. Regulations for the Administration of Audio and Video Products Oct. 1, 1994

     I4.Regulations for the Customs Protection of Intellectual Property Rights Oct. 1, 1995

     15.Law of the People's Republic of China on Accelerating the Commercialization of

     S & T Research Results Oct. 1, 1996

     The international conventions for the protection of intellectual property

     rights that China has acceded to

     Terms of law and regulation Time of accesion

     1.The Paris Convention for the Protection of Industrial Property 1984

     2. The Madrid Convention for International Trademark Registration 1989

     3. The Treaty on Integrated Circuits Related Intellectual Property 1989

     4. The Berne Convention on the Protection of Literary and Artistic Works 1992

     5. The Universal Copyright Convention 1992

     6. The Convention on the Protection of Phonograms 1993

     7. Patent Collaboration Treaty 1993

     The Overall Strategic Development of the   Chinese S & T Endeavor

     China now has a contingent of 19.13 million scientific and technical personnel, among whom 2.582 million are involved in science and technology activities. There are 5,860 institutes above the county level conducting scientific research work. Over the years, the country has established a comprehensive S & T system which covers all fields of science and technology.

     In line with the principle and strategic objectives set for China's science and technology development, China's S & T efforts are strategically deployed at the

     following three tiers:

     At the first tier are R&D activities aimed at tackling major S & T snags encountered in the nation's economic construction

     Through the organization and execution of the "National Program for Key S&T Projects", the "Industrial Experiment Program", the "Spark Program", the "National S & T Achievements Dissemination Program", and the "National Program for Science and Technology for Sustainable Development", efforts are under way to accelerate technological innovation and product regeneration in traditional industries, to develop and exploit advanced science and technology, and to harmonize the economic and social development with nature by upgrading the technological and labor performance level both in industry and agriculture.

     At the second tier are efforts to develop high and emerging technologies

     and high-tech industries

     Under the "National High Technology Research and Development Program" ("863 Program") and the "Torch Program", these efforts are designed to place the nation at the frontiers of the world's high technology development in certain fields; the S&T manpower is concentrated on key projects and limited objectives; and the

     commercialization, industrialization and globalization of high and emerging technologies are vigorously pursued.

     At the third tier are undertakings in basic research and applied basic research

     By launching the "National Program for Key Basic Research Projects"("the Scaling the Heights Program") and establishing the National Natural Science Foundation mechanism and key national Laboratories, the nation's basic research is expected to be greatly strengthened and provide a solid basis for the long-term scientific and technological advances as well as for the economic and social development.

     S & T INPUT

     Indicators Unit 1989 1990 1991 1992 l993 1994 1995

     R&D expenditure 100million yuan 112.31 125.49 142.30 169.00 196.00 222.24 286.00

     GERD/Gl)P % 0.70 0.71 0.70 0.70 0.62 0.50 0.50

     Govn't.funds l00million yuan 127.87 139.12 160.69 189.26 225.61 268.25 301.88

     for S&T

     Govn't. funds/ Total bud.* % 4.53 4.51 4.74 5.06 4.86 4.63 4.42

     R8D personnel (FTE)** 492.l 617.1 642.5 655.1 665.6

     (thousand person-year)

     *The debt is not included in total finance expenditure.

     ** FTE: Full-time equivalent jobs. which are total hours worked divided by average annual hours worked in full-time jobs.

     S & T OUTPUT

     Indicators Unit l989 1990 1991 1992 1993 1994 1995

     Scientific Papers paper 10,053 13,183 13,942 15,466 20,178 24,584 26,395

     Published Abroad *

     Scientific Papers paper 86,419 88,723 94,435 98,575 101,983 107,492 107,991

     Published Domestically **

     Number of patents item 32,905 41,469 50,040 67,135 77.276 77,735 83,045

     applied

     Exports of high-tech million

     products US$ 1,848 2,686 2,877 3.996 4,676 6,342 10,091

     National major S&T item 20,278 26.829 32,653 33,384 32,916 30,230 31,000

     achievements registered

     * The indexes used include SCI.L ISTP and EI services

     ** The data of domestic publications and based on about 1200 journals of China

     An Overview of Major S &T Development Programs and Undertaking

     The National Program for Key S & T Project

     First started in 1982, the "National Program for Key S&T Projects" is a critical component of the five-year plans for the national economic and social development. It is updated every five years and submitted for approval by the National People's Congress --the Chinese Parliament.

     The objective of the Program is to find solutions to the scientific and technological bottlenecks in the national economic and social development.

     The Program is funded by both the central and local governments, and supplemented by financial inputs from different industrial sectors and institutions. The government investment is in three types: completely free support, partially free support, and loans. The government investment on the Program during the Eighth Five-year Plan period (199 l-1995) was about 3.5 billion yuan.

     The Spark Program

     Approved by the Chinese Government in 1986, the Spark program is the nation's first guided development program designed to develop the rural economy through science and technology.

     Objectives

     To bring advanced and appropriate scientific and technological achievements to the rural areas; to guide the 800 million Chinese farmers onto the path towards modern, science and technology-driven agricultural production; to guide scientific and technological progress in township enterprises; to improve productivity; and to ensure a sustainable, fast and healthy development of the rural economy.

     Financial Resources

     Mainly raised from the public with some seed money from the state. Projects listed in the program are entitled to favorable bank loans and preferential taxation policies.

     Future Focus

     To develop regional pillar industries in rural areas; To establish Spark-intensive Areas in conjunction with the construction of small cities and towns.

     The National High Technology R&D Program

     In March of 1986, four eminent Chinese scientists urged the initiation of a new national high technology program. Thoroughly assessed by expertise and approved by the Chinese Government, the National High Technology Research and Development Program (also referred to as 863 Program) was launched.

     Guiding Principles

     Limited targets, clearly-defined priorities, vigorous monitoring of global technological advances, striving for breakthroughs wherever possible, and combining the military with the civilian while focusing attention on the civilian.

     Objectives

     The Program is designed to pool the best technological resources in China for the purpose of keeping up with the world's high technology advances in certain fields, to close the gap between China and other countries in several critical areas; and to strive for breakthroughs wherever possible. The Program also devotes attention to providing technological backup for the nation's economic development, national defence, and the  commercialization of high technology.

     Finance

     The financial support required for the Program comes from special government appropriations.

     The Torch Program

     Approved by the Chinese Government, the Torch Program (high and emerging technology industry development program) was initiated in 1988.

     Objectives

     To promote the commercialization, industrialization and globalization of the results of key high technology projects(including those from the 863Program) through market mechanisms.

     Financial Resources

     Mainly raised from the public with support of start-up funds from the state. New product projects listed in the Program are entitled to priority in getting bank loans and to preferential taxation policies over a specified period of time.

     The creation of the High and Emerging Technology Industry Development Zones

     represent a major thrust of the "Torch Program". Thus far, the central government has approved 52 such zones at the national level, resulting in clusters of burgeoning high and new technology industries in the coastal, frontier, boarder and inland cities all over the country. Preferential policies have been put into effect in these zones.

     The National S&T Achievement Dissemination Program

     The National S & T Achievements Dissemination Program was initiated in 1990.

     Objectives

     To inject advanced, appreciate, mature S&T achievements into the nation's economic and social development in a well organized and planned fashion; to mobilize large numbers of scientists and engineers for the implementation of massive popularization efforts in the rural areas, in enterprises, and in a wide range of economic and social activities, so as to enhance the overall performance level of the national economy.

     Features

     Meeting the technological requirements of enterprises, the countryside, and the traditional industries;

     Aiming at higher economic returns with less investment, short investment cycle, good demonstration role and spin-off effect.

     Finance

     Loans, investments, and funds are raised by enterprises and the public as well as start-up money provided by the government. The projects listed in the program are entitled to preferential treatment during implementation.

     The National Program for Key Basic Research Projects

     Approved by the Chinese Government, National Program for Key Basic Research Projects (the Scaling the Height Program) was initiated in 1991.

     Objectives

     The Program is designed to conduct high quality research on major scientific issues that have an important bearing on the nation's science and technology as well as economic and social development, so as to make great contributions to the world's scientific advances and our country's social progress, vigorously train young talents for basic research, and strengthen the buildup of a high quality research contingent.

     Funding

     The funding required for the program is provided by the government.

     The National Program for Key Basic Research Projects covers seven branches of basic research and eight branches of applied basic research fields: mathematics, physics, chemistry, mechanics, astronomy, geography, biology; energy, materials, information and computer, basic agronomy, basic medical sciences, resource and environment science, space science, and engineering science.

     Thus far, 45 basic research projects have been undertaken

     1. Fundamental research on high critical temperature superconductivity

     2. The computing theory and methods of large-scale scientific engineering

     3. Physics of Semiconductor Super Lattice and exploratory work on new materials

     and devices

     4. Nonlinear sciences

     5. Study and application of proving theorems with the aid of computer programs

     6. Nano-size materials science

     7. Some important problems on theoretical physics

     8. Multi-frequency band observation and research of the activity of celestial bodies

     9. Research on the chemical problems in lifetime

     10. Research on the molecular engineering of functional materials

     11. Research on basic physics problems of condensed polymers

     12. Atomic-molecular excited state and state-state reaction dynamics

     13. Fundamental research on rare earth materials

     14. Fundamental research on utilization of superiority of male sterility

     15. Research on the model of effective control of wart in the system

     16. Research on acupuncture meridian (special channels and collaterals in human

     body)

     17. Research of the nascent peptide chain and protein folding

     18. Molecular biology research on disease mechanism of malignant tumors,

     cardiovascular and cerebral diseases

     19. High yield and high efficiency physiology research of Chinese major crops

     20. Brain function and it s Cell and Molecule fundamental research

     21. Research on structure. property. molecular design and preparing process of photo   electrical materials

     22. Research on femtosecond laser technique and ultra-fast process

     23. Some problems of cognitive sciences

     a. Relationship between the cognition and computing

     Neural networks

     Thinking and synthesizing knowledge system

     24. Non-structure devices and mesoscopic physics

     25. High efficiency and low pollution burning Process of coal and oil

     26. Study on climate dynamics and climate prediction theory

     Research on forecast and countermeasures of changes and trends of China s future

     existence environment (20-50 years)

     28. Investigation and application of crust motion and geo-dynamics in modem time

     29. Research of the formation. environment change in Qinghai-Tibet Plateau

     30. Fundamental research concerning the searching super-large mineral deposits

     Fundamental research on the outbreak regularities and control techniques for 5 key

     pests of grain and cotton crops

     Nanometer scale information storage using SPM/SNOM technology

     33. Fundamental research on Alkali-Surfactant-Polymer co-flooding for enhanced oil

     recovery(EOR)

     34. New ideas and technology in the search for Giant Ore Deposits

     35. Investigation on new theories and technologies for modern Power system

     operation and control

     36. Fundamental research on improving seed stocks and disease-resistance of

     maricultivated organisms

     37. Micro Electro Mechanical System

     38. Tibetan Plateau field experiment and research

     Research on advanced aero-thermodynamics in energy utilization and new design

     system

     Fundamental research on safety and durability of major structures in civil and

     hydraulic engineering

     Fundament research on the immune prevention and control of animal important

     infectious disease

     Fundament research on the genetic control of human diseases and infectious

     diseases

     43. Fundamental research on key techniques in high-performance computing

     44. Fundamental research on smelting reduction technology

     Fundamental research on the advanced techniques of nuclear medicine and

     radiotherapy

     The National Program for Science and Technology for Sustainable Development

     Objectives

     To improve the quality of living of the people and to enhance the overall quality of the general public;

     To improve the living and development environment for the people and coordinate the relationship between man and nature;

     To promote scientific and technological progress in social undertakings and related  industries;

     To promote the implementation of the National Program for Science and Technology for Sustainable Development.

     Keynotes

     Promoting the implementation China's Agenda 21 through scientific and technological progress;

     Guiding and coordinating the conduct of scientific and technological undertakings in social development;

     Promoting S & T industrial development programs in such fields as medicine, environment, resources, and housing construction;

     Supporting a number of S & T research projects of great significance to the nation's social development;

     Arranging for a batch of key applied basic research and high/new technology development projects;

     Establishing a cluster of S & T industrial parks for social development;

     Establishing a cluster of comprehensive experiment zones for promoting community sustainable development.

     Soft Science Research

     Soft science is a complete scientific and technological knowledge system encompassing natural sciences, social sciences and engineering technologies and it is crucial for democratic and scientific decision-making.

     SSTC is in charge of the nation's soft science research. By 1992, some 960 soft science research organizations had been established nationwide with some 29,000 researchers. Over 16,000 research topics of soft science had been completed, with 4,341 having won national, ministerial, or provincial level awards for scientific and technological progress.

     Main Mission of Soft Science Research in the New Era

     To strengthen research on soft science theories and methodologies;

     To conduct research on important and critical issues in reform and development and provide services to a democratic and scientific decision- making process; and To foster the commercialization and industrialization of soft science research results and cultivate and develop a consultancy industry.

     Funding

     Provided by the central government agencies and local governments.

     International Science and Technology Exchange and Coorperation

     International science and technology exchange and cooperation, constituting a significant part in China's "open to the outside world" policy, is not only an important measure for developing the Chinese economy and science and technology, but also a major link in developing friendly relationship with other peoples and forging stronger relations with other countries.

     Since the advent of reforms and opening to the outside world, China, guided by national diplomatic policy, according to the necessity of China's S&T and economic development, and following the principles of equality, mutual benefits, results sharing, protecting intellectual property rights and respecting international practices, has conducted both governmental and non-governmental science and technology exchange and cooperation through bilateral and multilateral channels worldwide. Thus far, China has established cooperative scientific and technological relations with 135 countries and regions and entered into governmental science and technology cooperation agreements or economic and technical cooperation accords with 86 countries. In addition, China has acquired positions in over 30 scientific and technical institutions within the United Nations system and participated in 827 international S&T and academic bodies. By 1995, 27,785 international S&T exchange and cooperative projects had been carried out with over 93,981 personnel exchanged.

     The Government of China has adopted a series of measures to encourage S&T personnel and research institutes to involve themselves in all aspects of international cooperation in a multitude of forms through various channels and at various levels, such as attending international academic conferences, holding international S&T exhibitions and symposiums, inviting foreign experts on lecture tours and for technical consultancy and feasibility studies, conducting cooperative research, joint investigation and exploratory activities, holding academic seminars, establishing joint laboratories, technical training centers, joint venture high-tech enterprises, sending Chinese experts abroad for joint research or even being hired by overseas institutes to work abroad. The Government of China encourages international science and technology exchange and cooperation that leads to a joint development of technology-industry- trade, technology - agriculture-trade, and technology-trade-finance.