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China’s R&D Spending Hits $583 Billion As US Research Funding Faces Cuts

Basic research funding increased 13.3% to 283.46 billion yuan, while research spending by universities climbed 11% to 340.7 billion yuan

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China’s research and development spending reached 3.9 trillion yuan ($583 billion) in 2025, rising 8.2% year over year as the United States faces proposed cuts to federal research funding, according to China’s National Bureau of Statistics.

Basic research funding increased 13.3% to 283.46 billion yuan, while research spending by universities climbed 11% to 340.7 billion yuan. Businesses accounted for more than 77% of China’s total R&D investment, with corporate spending exceeding 3 trillion yuan for the first time.

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Meanwhile, the Trump administration has proposed reducing 2026 funding for the National Institutes of Health by 39% and the National Science Foundation by 55%. A Harvard Business School article said around 3,800 research projects were affected by approximately $3 billion in NIH grants frozen or terminated in early 2025.

Beijing plans to prioritise semiconductors, artificial intelligence, quantum technology and biotechnology. China’s R&D expenditure reached 2.8% of GDP, surpassing the OECD average for the first time.

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