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CHINA SCIENCE AND
TECHNOLOGY
NEWSLETTER
The Ministry
of Science and Technology
People's Republic of
China
N0.287 February 28,2002
IN THIS ISSUE
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*
China's New Catalog for Foreign Investment
*
Genetically Modified Bioproducts Check
* S and T
Impacts on Economic and Social Development
*
Encouraged S and T Advancement at Grassroots Level
*
China-US Technical Innovation Seminar
* China's NIQ
* Home-Made HIFU into
UK
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SPECIAL
ISSUES
China's New
Catalog for Foreign Investment
With the
approval of the Chinese State Council, the new Catalog for
Foreign Investment Guidance jointly published by the State
Development Planning Commission, the State Economic and
Trade Commission and the Ministry of Foreign Trade and
Economic Co-operation on March 11, 2002 will come into force
on April 1, 2002. As a result, the old Catalog bearing the
same title jointly published by the State Development
Planning Commission, the State Economic and Trade Commission
and the Ministry of Foreign Trade and Economic Co-operation
on December 29, 1997 under the approval of State Council
will cease to effect on the same day.
The new
Catalog is of 371 entries subtitled under four categories
for encouraged, allowed, restricted and prohibited. In the
new Catalog, the classification of industries or products is
done on statistics based classification approaches usually
applied in national economy and restriction category is no
longer sub-divided into Class A and B as the old one was.
The new Catalog is of the following improvements: 1)
sticking to further opening to the outside world,
encouraging foreign investment in China. The entries falling
under the category of the encouraged are increased from 186
to 262 in number while the restricted down from 112 to 75.
The restrictions on the equity shares of foreign investors
got loosen. For example, the provision on the majority
equity holding by the Chinese party has been outdated when
it comes to the investment in piers for common use in ports;
some areas previously prohibited for foreign investment such
as telecommunication, gas, heating, water supply and
drainage system are opened up for foreign investment for the
first time in the country; 2) being in line with its promise
before WTO, China will further open its service and trade
areas such as banking, insurance, commerce, foreign trade,
tourism, telecommunication, transport, accounting, auditing
and legal affairs according to its promised areas, quantity,
operation scope, equity proportion and timetable. In the
meanwhile, it will list relevant promises as Appendix to the
Catalog; 3) encouraging foreign investment in China's
western section by loosening restrictions on equity
proportion and industrial sectors when such investment is
made there; 4) taking full advantage of market competition
mechanism and placing general industrial products under the
category of the allowed so as to stimulate industrial and
products upgrading through competition.
As is
revealed by the Catalog, in the near future China will
encourage foreign investment mainly in the following areas:
1) foreign investment in transforming traditional
agricultural system, developing modern agriculture and
promoting industrial process of agriculture; 2) foreign
investment in infrastructures and basic industries such as
transportation, energy, raw materials and etc.; 3) foreign
investment in high tech industries such as electronics and
information, bioengineering, advanced materials, aviation
and space, encouraging foreign investment in setting up
research centers in China; 4) foreign investment in the
application of advanced proven technologies to transform
traditional industries such as machinery, light and textile
industries, realizing upgrading of facility industries; 5)
foreign investment in the projects related to integrated
utilization of resources and renewable resources,
environment protection and urban infrastructures; 6) foreign
investment in the industries in the western region that have
their special strength so as to support the strategy of west
development; 7) foreign investment in the category of the
allowed for full products export.
It is
reported that starting from the date of enactment, the
foreign invested projects in the category of the encouraged
will enjoy tax holiday for imported equipment and import
added-value tax.
Genetically Modified
Bioproducts Check
It is revealed from the
source of Office for Security Management of Agricultural
Genetically Modified Bioproducts under the Chinese Ministry
of Agriculture that starting from March 20, 2002, all
genetically modified agricultural bioproducts under 17
species in 5 classes defined by the Identification Catalog
shall be marked if they are to be sold in Chinese domestic
market. It is reported that China has exercised all-round
control over the whole process from study to experiment,
production, processing, operating and import and export of
genetically modified agricultural bioproducts.
By the end of 2001, the Chinese Ministry of
Agriculture had received 700 and more applications for
security oriented assessment of genetically modified
agricultural bioproducts and 52 domestic applying
institutions and 4 foreign companies were treated equally
for their applications. Up to date, China has not granted
production permit to most genetically modified agricultural
bioproducts related to food, edible oil and other edible
crops except genetically modified cotton which is allowed to
grow strictly within the areas approved by the Ministry of
Agriculture for security reason.
To tighten up
the security control of genetically modified bioproducts,
the Chinese State Council issued on May 23, 2001 the
Regulations on Security Management of Genetically Modified
Agricultural Bioproducts (hereinafter referred to as the
Regulations). To ensure the smooth enforcement of the
Regulations, the Ministry of Agriculture on January 5th,
2002 publicized three by-laws: Methods on Security
Evaluation and Management of Genetically Modified
Agricultural Bioproducts, Methods on Security Management of
Imported Genetically Modified Agricultural Bioproducts, and
Methods on Identification Management of Genetically Modified
Agricultural Bioproducts which came into effect on March 20,
2002.
Genetically modified agricultural
bioproducts mentioned in the Regulations and other three
supporting by-laws are defined as animals, plants, microbes
and associated products genetically modified through genetic
engineering techniques for the purpose of agricultural
production or agricultural produce processing, mainly
including genetically modified animals and plants (including
seeds, stud stocks, aquatic fries) and microbes; genetically
modified animals and plants, microbe products, genetically
modified agricultural products for direct processing; seeds,
stud stocks and aquatic fries, pesticides, vet medicines,
fertilizers and additives containing the elements of
genetically modified animals or plants, microbes and other
products. The Methods on Security Evaluation and Management
of Genetically Modified Agricultural Bioproducts stipulates
that all activities on research, testing, production and
import of genetically modified agricultural bioproducts on
the Chinese territories shall go through security
evaluation.
Methods on Identification
Management of Genetically Modified Agricultural Bioproducts
has defined objects calling for identification, approaches,
examining and supervision organs for such identification,
and compiling, readjustment and issuance of identification
catalogs.
S and T Impacts on Economic and
Social Development
On March 20, 2002 the
Chinese Ministry of Science and Technology announced the
conclusion of its systematic watch on S and T advancement in
the country: science and technology has produced remarkable
effects on stimulating economic and social development.
To judge the S and T achievements made in
economic and social systems, the Ministry of Science and
Technology deployed in the 9th Five-Year Plan period watch
and studies of nationwide S and T advancement. The
same efforts in 2001 (based on the data collected in 2000)
were completed, being reported the following main trends in
the nation's S and T advancement.
1) China's S
and T budget has witnessed great increase with RMB 89.6
billion for R and D budget, or 17.9% up against the previous
year and made up 1% of the nation's total GDP in the year.
2) S and T output has enjoyed bumper harvest with
6,177 invention patents granted, two times that of the
previous year.
3) Remarkable progress for high tech
industrial process with additional values of RMB 204.8
billion derived from the industry, or 28.8% higher than that
recorded in the previous year. High tech export volume has
reached USD 37.04 billion, or 50% higher than that of the
previous year.
4) Science and technology activities
have produced remarkable effects on stimulating the nation's
economic and social development. China's per capita GDP has
risen to RMB 7078, landing a real term increase of 7.1%
compared with that of the previous year. In addition,
environmental protection has seen encouraging achievements
and information process of social life applauded for
remarkable progresses.
Encouraged S and T
Advancement at Grassroots Level
As is
announced by the Chinese Ministry of Science and Technology
on March 20, 2002, according to the result derived from the
analysis of the data collected from 1,031 towns, counties
and districts involved in the nation's S and T advancement
survey, China's grassroots units such as towns, counties and
districts have witnessed encouraging trend for their S and T
advancement. These trends have found their main expressions
in enhanced S and T input, intensified S and T activities
and remarkably increased S and T outputs. S and T
advancements have effectively promoted system reforms,
mechanism and technical innovations in these areas.
Enterprises of scales have paid more and more attention to
improving products quality and market competitiveness
through technical innovation, applications of advanced
technologies, strengthening scientific management and
increasing their input in R and D activities.
As a result, S and T advancement has
stimulated the economic and social development in these
areas.
On the other hand, China has seen
uneven S and T advancement achieved in different regions.
The towns, counties and districts rated in the first places
are of fine policy environment, optimized S and T resources
allocations and high S and T output, enjoying apparent
strength in terms of economic and social development when
compared with their counterparts with lower rating. In 2000,
the formers' urban per capita GDP recorded 4 times and rural
8 times that of the latter. Towns, counties and districts in
the eastern, middle and western sections have seen large
gaps in their respective S and T inputs.
The
Ministry of Science and Technology will take further steps
to strengthen local S and T activities, especially 1) pay
more attention to general guidance for creating more room
for local S and T development and strengthen guidance and
support for the construction of regional innovation system;
2) support local S and T activities through experiment,
demonstration and priority projects; encourage more
involvement of locality in dedicated national projects;
strengthen the construction of local S and T bases; continue
to implement Sparkle and Torch Programs and relentlessly
promote high tech industrial process at local level; 3)
establish information sharing mechanism so as to create fine
interactions between upper and lower levels; 4) strengthen
personnel training and exchanges.
Recent years
have seen more attention paid to S and T advancement by
government and all walks of life at local level which is of
positive stimulating effects on the implementation of
strategy "rejuvenating the nation with science and
education", strengthening the management of S and T
activities and promoting regional S and T advancement.
The Ministry of Science and Technology has
certified 383 towns, counties and districts such as
Shijiazhuang with the honor of national role model for local
S and T advancement.
NEWS BRIEFS
China-US Technical Innovation Seminar
The Second China-U.S. Technical Innovation
Seminar was held on March 19, 2002 in Washington DC with the
participation of 40 and odd representatives from Chinese and
U.S. research institutions and enterprises. The participants
discussed diversified topics related to technical innovation
financing, network and others. The Chinese Delegation headed
by Mr. Li Xueyong, Chinese Vice Minster of Sciences and
Technology and Mr. Zhu Zuoyan, Vice Chairman of Chinese
National Natural Science Foundation were present at the
seminar.
At the opening ceremony on March 19,
2002, Li Xueyong made his keynote speech “China's
Policies on Innovations”. After reviewing Chinese
government's support for technical innovations since its
reform and opening, Mr. Li addressed the future trends and
perspectives of China's policies on technical innovations.
He pointed out that China's policy on technical innovation
will aim at working out a series of regulations and measures
to promote R and D innovation, system innovation and
mechanism innovation so as to accelerate the construction of
China's innovation system and consequently its sustainable
economic and social development.
Referring to
the fact that the Seminar has attracted the concern and
attention of economists, S and T policy makers and
entrepreneurs of both countries, Vice Minister believes that
this is an event meaningful for promoting the exchanges of
technical innovation policies between the two countries,
exploring the latest development on technical innovation
theories tailored to respective situation of each country
and stimulating the cooperation in the said field.
Sponsored by Science Foundations of both
countries under the inter-governmental S and T cooperation
framework, China-U.S. technical innovation seminar is an
important component of the decade-long S and T policy
dialogue series arranged between the two countries.
China's NIQ
On March 19, 2002,
China published its report on national information process
in Beijing. As is shown by the report, China's national
information quotient (NIQ) reached 38.46. Among the
indicators published, the one for information technology
application runs the highest at 65.89, demonstrating that
information and network technologies have become a major
element raising China's information level. The report also
shows that during the period from 1998 to 2000, China's
information level went up by 48.6%, or 21.9% for average
annual growth, much faster than the annual growth of its
economy such as 7% or 8%.
As far as urban
information process is concerned, Beijing sits on the top
with an indicator as high as 157.22, or five times that of
the nation's average. Of the total six indicators, Beijing
was rated the first in five areas such as resources
development and utilization, information network
construction, information technology applications,
information products and service and information related
human resources though the second for information
development environment. Beijing has recorded the highest
318.82 for its information network construction, or 8 times
that of the nation's average, and also 9 times that of the
nation's average in terms of its information related human
resources.
Home-Made HIFU into UK
On March 15, 2002, the first proprietary large
medical equipment HIFU developed by Chongqing Medical
University made its way to the final destination of
Churchill Hospital under Oxford University. It is reported
that the said machine has been sold to the hospital for
about USD 2 million.
HIFU is a high intensity
focusing ultrasonic medical device developed in recent years
for the so-called no-wound cancer treatment. The export of
such large proprietary medical equipment made in China has
virtually ended the history that China has to entirely rely
on export for the supply of large medical equipment.
It is reported that Chongqing Medical
University has also inked an agreement with a Singapore
based company for selling its HIFU to the latter. Up to
date, there have been 15 hospitals in China that have
brought home-made HIFU for their clinic applications.
China Grasps Core Technique for Aloe
Processing
On January 23rd, 2002, a hundred
and more aloe experts from China, U.S., Singapore and other
countries and regions gathered together to witness their
recognition of the techniques developed by China for
separating and concentrating aloe membrane. Experts both
from home and abroad agreed that the solution to the core
technique restricting the development of world aloe industry
has made China in a leading position among major producers
of advanced industrial aloe materials in the world.
Chinese Ministry of Science and Technology has
listed the development of advanced aloe raw material as a
basic project for the development of China's aloe industry.
Closely collaborating with Yuanjiang County, Yunnan
Province, the largest aloe growing base in the country, a
number of domestic research institutes have worked
painstakingly for three and more years and eventually landed
breakthrough progresses on the separation and concentration
of effective aloe elements under normal temperature, the key
technology for producing advanced raw materials of
industrial applications and the first of its kind in the
world.
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