MoST R&D budget cut

Beijing has massively cut the Ministry of Science and Technology’s (MoST) 2024 R&D budget. 

According to MoST’s annual report, released on Tuesday:

• Its 2024 R&D budget is RMB 24.16 billion, a whopping 60% lower than 2023’s RMB 60.12 billion. 

But that doesn’t mean Beijing is spending less on R&D.

• The central government’s R&D budget was set at RMB 370.8 billion, up 10% from last year. 
• However, the budget is being reallocated away from MoST and towards other agencies.

Some context: Following the March 2023 government reorganization, MoST has shifted away from disbursing R&D funding and has lost several research centers to other agencies, such as the National Science Foundation (NSFC) and the National Health Commission (NHC).

• MoST now focuses on more high-level strategic planning. 

The NSFC is the biggest winner from reallocated R&D funding. 

• Its R&D budget grew by RMB 22 billion this year, a 51% increase from 2023. 

Get smart: This doesn't mean that MoST's power has been decimated.

• MoST sits over the NSFC, so it will still oversee the NSFC's funding distribution channels.

But: It does mean that direct control over some research spending is being taken out of MoST's hands – which certainly isn't a vote of confidence for MoST.

• This reform is overdue – there have long been complaints that MoST’s micromanagement of R&D funding created a breeding ground for corruption, undermining China’s technological progress.

The big question: Will Beijing implement the checks and balances needed to prevent other departments from squandering R&D funding like MoST did?