Beijing giveth, and Beijing taketh away
Beijing is getting more hands-on with sci-tech funding.
On Wednesday, the Ministry of Finance (MoF) and the Ministry of Science and Technology (MoST) tweaked the measures for managing the central government’s sci-tech transfer payments to local governments – which those governments use to fund local sci-tech projects.
The fund isn’t that big: The central government usually puts up several billion RMB annually – which it distributes across all provinces.
- But Beijing still wants to ensure the the money is put to good use.
The big change: The Central Commission for Science Technology (CCST) – China’s most powerful sci-tech policymaking body – now has a say in how the funds are used.
- Specifically, the revised measures now require local governments to use part of the money to carry out CCST-directed sci-tech projects – which will be co-managed by the central government with the local government.
Get smart: This is yet another sign that Beijing is intent on centralizing sci-tech decision-making – reducing local governments' autonomy in allocating sci-tech funding.
Get smarter: That’s a double-edged sword.
- Centralization could lead to more coordinated and focused efforts toward China's national sci-tech objectives.
- But it will waste resources and stymie innovation if out-of-touch central officials make the wrong bets.