China’s local state-owned enterprises (SOEs) supervised and administered by local governments have reported a remarkable 10.4 percent increase in research and development (R&D) spending in the first half of 2024, amounting to 249.57 billion yuan (approximately $35 billion), according to the State-owned Assets Supervision and Administration Commission of the State Council.
The surge in R&D investment comes as local SOEs accelerate their efforts to enhance scientific and technological innovation capabilities. Zhang Yuzhuo, chairman of the commission, emphasized the importance of innovation in driving economic growth and competitiveness during a recent address.
Since the beginning of the year, state-owned assets supervision and administration commissions of local governments have launched a series of policy measures to support scientific and technological innovation. For instance, in Shandong Province, local SOEs are encouraged to prioritize wage increase incentives for scientific and technological talent and provide remuneration for key talent on a case-by-case basis.
In Beijing and Xiamen, policies to establish R&D reserve funds for state-owned enterprises have been formulated and implemented on a pilot basis. These initiatives aim to provide sustained financial support for innovation projects and foster a conducive environment for technological advancements.
Zhang Yuzhuo stated that the commission would continue to optimize institutional arrangements to promote indigenous innovation within state-owned enterprises. Efforts will focus on encouraging diversified capital investment and nurturing high-quality venture capital institutions to boost innovation in basic research and facilitate the industrialization of innovative outcomes.
In addition to the significant increase in R&D spending, local SOEs reported total business revenues of 19.2 trillion yuan and total profits of 826.78 billion yuan in the first half of the year. Their fixed asset investment stood at 2.9 trillion yuan, reflecting robust economic activity and investment.
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Local SOEs in China report 10.4% rise in R&D spending in H1 2024
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