Law of the People's Republic of China on Scientific and Technological Progress (2021)

Chapter I General Provisions

Article 1

This Law is enacted in accordance with the Constitution in order to comprehensively promote scientific and technological progress, give full play to the role of science and technology as the primary productive force, innovation as the primary driver of growth, and talent as the primary resource, facilitate the turning of scientific and technological advances into actual productivity, leverage science, technology and innovation to drive economic and social development, and build China into a modern socialist country in all respects.

Article 2

The Communist Party of China's overall leadership over scientific and technological affairs shall be upheld.

The state stays committed to the new development philosophy, places science, technology and innovation at the core of national modernization drive, and makes scientific and technological development a strategic pillar for national development. The state implements the strategy for invigorating China through science and education, the strategy on developing a quality workforce and the innovation-driven development strategy. By following an innovation path with Chinese characteristics, the state endeavors to turn the nation into a powerhouse of science and technology.

Article 3

Scientific and technological progress shall focus on exploring global scientific and technological frontiers, serving main economic sectors, meeting major national needs, and safeguarding people's life and health, to contribute to the economic and social development and national security of the country, as well as the sustainable development of humanity.

The state encourages research and development (R&D), and promotes the use of science and technology to transform and upgrade traditional industries, develop high-tech industries and foster public undertakings, thus contributing to achieving carbon peak and carbon neutrality, creating new growth drivers and realizing high-quality development.

Article 4

The state creates a national innovation system that is efficient, collaborative and open. The state makes holistic planning for scientific and technological innovation and institutional innovation, and improves the system for mobilizing resources nationwide in the socialist market economy. By enabling the market to play a decisive role in resource allocation and giving better play to the role of government, the state facilitates the optimal allocation and efficient utilization of scientific and technological resources, the close collaboration among innovators, the orderly flow of innovation factors and the consistent improvement of the innovation ecosystem. The state enhances the nation's innovation capacity both as a whole and in key fields, and improves the overall efficiency of the innovation system.

The state builds and strengthens the national strategic forces of science and technology, comprised mainly of national laboratories, national R&D institutions, top-notch research universities and leading tech-based enterprises, which shall play a supporting and leading role in making major breakthroughs and original innovation in key fields and priority directions of strategic importance to serve the country's major strategic needs.

Article 5

The state ensures coordination in pursuing development and upholding security. The state enhances its governance capacity for scientific and technological security, improves the systems and mechanisms for forestalling and defusing security risks, and strengthens the security management of R&D and commercialization activities. The state supports innovation in the fields of national security, and enhances the capacity of such innovation.

Article 6

The state encourages the integration of R&D into higher education and industrial development, as well as the integration and mutual reinforcement of multiple disciplines.

The state strengthens scientific and technological cooperation across regions, industries and fields, and supports scientific and technological development in old revolutionary base areas, ethnic minority areas, remote areas and impoverished areas.

The state coordinates the development of military and civilian technologies, facilitates the sharing of technological resources, the communication of technological development needs and the two-way technology transfer between the two sectors, and strengthens the development of dual-use technologies.

Article 7

The state promotes scientific and technological activities in accordance with the principles of serving national goals and encouraging free exploration. To build the nation's strength of science and technology at a faster pace, the state adopts a forward-looking approach to deploying major basic research, as well as the frontier technology research and public benefit-related technology research which have great prospects of industrial application, provides sustained and steady support for the development of basic research, frontier technology research and public benefit-related technology research, and stimulates original innovation and breakthroughs in core technologies in key fields.

Article 8

The state guarantees the freedom of R&D, encourages scientific exploration and technological innovation, and protects the legitimate rights and interests of scientific and technological personnel, such as free exploration.

R&D institutions, institutions of higher education, enterprises, public institutions and citizens have the right to decide their own subjects of research, explore unknown scientific fields, and engage in basic research, frontier technology research and public benefit-related technology research.

Article 9

Guided by the principle of combining theory with practice, schools and other educational institutions shall place greater focus on helping educatees cultivate independent thinking, practical abilities, innovative skills and critical thinking, as well as the scientific spirit of pursuing truth, valuing innovation and respecting facts.

The state ensures that institutions of higher education play an important role in R&D, and encourages them to carry out R&D, provide social services and foster high-caliber professionals with a sense of social responsibility, a spirit of innovation and an ability to put ideas into practice.

Article 10

Scientific and technological personnel, as an important force for socialist modernization, shall be respected by the whole society.

Recognizing the strategic importance of talent for development, the state deepens reform of the institutions and mechanisms for talent development to improve the cultivation, recruitment and utilization of talent in a comprehensive way, creates an environment that conforms to the inherent laws of innovation and talent growth, and gives full play to the role of talent as the primary resource.

Article 11

The state creates a social environment favorable for innovation, and encourages government departments, people's organizations, enterprises, public institutions, social organizations and citizens to participate in and support scientific and technological activities.

The whole society shall respect hard work, knowledge, talent and creativity to foster a social climate valuing science.

Article 12

The state promotes science popularization, strengthens the development of science popularization facilities and capacity, and improves the scientific literacy of all citizens, especially young people.

Science popularization is a responsibility shared by the whole society. The state establishes and improves incentives to encourage R&D institutions, institutions of higher education, enterprises, public institutions, social organizations and scientific and technological personnel to actively participate in and support science popularization.

Article 13

To protect intellectual property rights and encourage innovation, the state implements the strategy on intellectual property rights, improves the system of intellectual property rights, and creates a social environment where intellectual property rights are respected.

Enterprises, public institutions, social organizations and scientific and technological personnel shall raise their awareness of protection of intellectual property rights, enhance their ability of innovation, build their capacity for the creation, exploitation, protection, management and service provision of intellectual property, and improve the quality of intellectual property.

Article 14

The state establishes a science and technology assessment system conducive to innovation.

Science and technology assessment shall follow the principles of openness, fairness and equitability, and focus on the quality, contribution and performance of scientific and technological activities. Differentiated approaches shall be adopted to assess scientific and technological activities according to their classification.

Article 15

The State Council shall lead the scientific and technological work nationwide, formulate medium- and long-term programs for scientific and technological development and plans for science, technology and innovation, and identify major national projects of science and technology and major projects closely related to science and technology. Medium- and long-term programs for scientific and technological development and plans for science, technology and innovation shall set clear guidelines, provide strategic directions, and guide and coordinate scientific and technological development, resource allocation and policy formulation.

Governments at or above the county level shall incorporate scientific and technological work into their economic and social development plans, and ensure that scientific and technological progress is aligned with economic and social development.

Local governments at all levels shall take effective measures to strengthen the organization and management of scientific and technological work and foster an enabling environment for scientific and technological progress.

Article 16

The administrative department of science and technology under the State Council shall be responsible for the macro management, coordination, service, support, and supervision of scientific and technological work nationwide. Other relevant administrative departments under the State Council shall be responsible for scientific and technological work within their terms of reference.

The administrative departments of science and technology under local governments at or above the county level shall be responsible for scientific and technological work of their respective administrative regions. Other relevant administrative departments under local governments at or above the county level shall be responsible for scientific and technological work within their terms of reference.

Article 17

The state establishes a coordination mechanism for reviewing major issues concerning scientific and technological work, and coordinating major matters such as the establishment and coordination of national scientific and technological programs and projects, the allocation of scientific and technological resources, the restructuring of R&D institutions, and the integration of R&D with higher education and industrial development.

Article 18

May 30th shall be the National Day for Science and Technology Workers.

The state establishes and improves the system of science and technology awards, and sets up awards including the State Preeminent Science and Technology Award to commend organizations and individuals that have made important contributions to scientific and technological progress. Specific measures for science and technology awards shall be formulated by the State Council.

The state encourages organizations and individuals at home and abroad to set up science and technology awards to commend organizations and individuals that have made contributions to scientific and technological progress.

Chapter II Basic Research

Article 19

The state enhances the capacity of basic research, strengthens the overall planning for research projects, talent and bases in alignment with the inherent laws of scientific development and talent growth, and provides good material conditions and strong institutional guarantee for basic research.

To increase scientific and technological capacity at the source, the state strengthens the planning and deployment of basic research, and promotes the combination of free exploration with goal-oriented basic research. Basic research shall aim at exploring scientific and technological frontiers, serving economic and social development, meeting major needs for national security, and safeguarding people's life and health, and focus on tackling key technological problems. Basic research in areas such as emerging and strategic industries shall be strengthened.

The state encourages R&D institutions, institutions of higher education, and enterprises to bolster basic research and promote original innovation by taking advantage of their respective strengths.

Article 20

The state establishes an investment mechanism for ensuring stable government funding for basic research.

The state encourages local governments with eligible conditions to strengthen their support for basic research by providing appropriate fiscal investment in light of the needs of local economic and social development.

The state motivates enterprises to increase expenditure on basic research, and encourages the non-governmental sector to invest in basic research through diverse means such as donations and the establishment of funds, by providing fiscal, financial and tax policy support.

The proportion of expenditure on basic research in the gross domestic expenditure on R&D shall be gradually increased to meet the requirements of building China into a powerhouse of science and technology.

Article 21

The state establishes a National Natural Science Fund to finance basic research and support relevant personnel training and team building. The principles of “guidance at macro-level, voluntary application, fair competition, peer review, and merit-based selection” shall be followed to identify projects to be funded by the National Natural Science Fund.

In light of their actual economic and social situation and regional development needs, local governments with eligible conditions may set up their natural science funds to support basic research.

Article 22

The state improves the structure of academic disciplines and the knowledge system, promotes cross-disciplinary integration, and facilitates the coordinated development of basic and applied research.

Article 23

The state strengthens the fostering of researchers in basic science, provides strong and stable support for them, and improves their quality and competence.

The state establishes a resource allocation mechanism that meets the needs of basic research, and assessment and incentive mechanisms that are conducive to basic research, and creates a favourable environment that allows researchers to devote themselves to basic research, so as to encourage and attract the involvement of outstanding scientific and technological personnel in basic research.

Article 24

The state strengthens the development of basic research bases.

The state improves the essential facilities for basic research, and promotes open access to such facilities.

Article 25

The state supports institutions of higher education in the development of basic disciplines, the fostering of researchers in basic science and the independent deployment of basic research, so as to improve the quality of basic research in such institutions.

Chapter III Applied Research and Commercialization

Article 26

The state encourages applied research that can give impetus to basic research, and promotes the integrated development of basic research, applied research and commercialization of research results.

The state improves the general-purpose, fundamental technology supply system, promotes the in-depth integration of the innovation chain and industrial chain, and guarantees the security of the industrial chain and supply chain.

Article 27

The state improves the coordination mechanism for achieving major breakthroughs through collaborative research. Research projects, talent, bases and funds shall be deployed in a coordinated manner to facilitate close collaboration among enterprises, universities and R&D institutions in the R&D of China's own core technologies in key fields concerning economic and social development, national security and people's life and health.

Article 28

The state improves the system for mobilizing nationwide resources to make breakthroughs in core technologies in key fields. The state launches and implements major tasks that serve the strategic needs of the country, systematically deploys major projects of pioneering and strategic significance, and adopts a forward-thinking approach to planning for the R&D of core technologies in key fields.

Article 29

The state strengthens the building of general-purpose technology platforms and R&D institutions serving the needs of industrial development, and encourages local governments to build R&D institutions for applied research serving local needs.

The state encourages R&D institutions and institutions of higher education to strengthen the R&D of general-purpose, fundamental technologies, and encourages enterprises to lead R&D activities that serve the needs of the market and industrial development.

Article 30

The state strengthens the pilot-scale test, engineering application, and industrial application of R&D results, and steps up the pace to turn them into actual productivity.

R&D institutions and institutions of higher education established with fiscal funds shall actively promote the commercialization of R&D results. These institutions shall strengthen their technology transfer offices, step up the training of their technology transfer staff, and improve their systems for the commercialization of R&D results.

Article 31

The state encourages enterprises, R&D institutions, institutions of higher education and other organizations to establish cooperation mechanisms that exploit each other's advantages, clearly define their roles and responsibilities, and ensure risk and result sharing. Under such mechanisms, joint research platforms, technological innovation alliances, and innovation consortia may be set up based on market principles to promote R&D and improve the effectiveness of commercialization.

Article 32

For the R&D results of projects fiscally funded through scientific and technological programs, the project undertaking party may obtain relevant intellectual property rights, and commercialize the R&D results through their own investment, transfer them to others, jointly commercialize them with others, license the use of them to others, or use them as contributions to investment according to law, on the premise that in so doing it will not damage national security, national interests, or major public interests.

The project undertaking parties shall exploit the intellectual property rights under the preceding paragraph according to law, and take measures to protect them. The project undertaking parties shall submit annual reports to the project management institutions on their exploitation and protection. If the intellectual property rights are not exploited within a reasonable period of time and without justifiable reasons, the state may exploit them without compensation, or permit others to exploit them with or without compensation.

For the intellectual property rights under the first paragraph of this Article obtained by the project undertaking parties according to law, the state may exploit them without compensation, or permit others to exploit them with or without compensation, for the sake of national security, national interests, and substantial public interests.

Where the intellectual property rights under the first paragraph of this Article are exploited by the project undertaking parties, the benefits arising therefrom shall be distributed in accordance with relevant provisions of laws and regulations. In the absence of such provisions, relevant agreements shall be followed.

Article 33

The state implements a distribution policy oriented toward highlighting the value of knowledge. The state promotes reform of the mechanisms for intellectual property rights attribution and benefits distribution in accordance with relevant regulations of the state, and explores the establishment of a system granting scientific and technological personnel the ownership or right of long-term use of the R&D results which are created during their employment.

Article 34

The state encourages the intellectual property rights generated under fiscally funded projects of scientific and technological programs to be first used in China.

Where intellectual property rights under the preceding paragraph are transferred to overseas organizations or individuals, or licensed exclusively to overseas organizations or individuals, relevant approval shall be obtained from the project management institutions. Where the provisions of other laws or administrative regulations provide for other approval authorities, such provisions shall prevail.

Article 35

The state encourages the application of new technologies. Under the principles of inclusiveness and prudence, the state facilitates trials for applying new technologies, products, services and models, and creates conditions for their application.

Article 36

The state encourages and supports applied research in agriculture, disseminates and popularizes knowledge of agricultural science and technology, and accelerates the commercialization of agricultural R&D results. The state promotes the progress in agricultural science and technology to advance rural revitalization and the modernization of agriculture and rural areas.

Governments at or above the county level shall take measures to provide institutions engaged in the R&D and promotion of public benefit-related agricultural technologies with support in the development, application and promotion of new crop varieties and agricultural technologies.

Local governments at all levels shall encourage and guide agricultural technology service agencies, technical task force, and non-government technological organizations to provide technological services for crop farming, forestry, animal husbandry and fishery, and technological training and guidance for farmers.

Article 37

The state combines R&D with the development of product and service standards, and with product design and manufacturing. The state guides the involvement of R&D institutions, institutions of higher education, enterprises and social organizations in the research, formulation and adoption of national standards for major innovative products and services, and in the setting of international standards.

Article 38

The state fosters unified, open and interconnected technology markets that ensure orderly competition. The state encourages the establishment of intermediary service institutions engaged in technology evaluation, technology brokerage, innovation and entrepreneurship services. To promote the wider application of R&D results, the state guides the establishment of a technology transaction service system and an innovation and entrepreneurship service system that are commercialized, specialized, networked, IT-based and intelligent.

In technology transaction, the principles of voluntariness, equality, mutual benefit, and good faith shall be followed.

Chapter IV Innovation by Enterprises

Article 39

The state establishes a market-oriented system for technological innovation under which enterprises are the principal actors who engage in close cooperation with R&D institutions and institutions of higher education. The state guides and supports enterprises in conducting technological innovation activities, and supports them in leading national tasks for technology breakthroughs. The state enables enterprises to play a major role in technological innovation by encouraging them to become principal actors in innovation decision-making, research investment, organization of research activities, and commercialization, and by facilitating the flow of innovation factors to them, so as to improve their capacity for technological innovation.

The state cultivates leading tech-based enterprises with great influence and competitiveness, and gives full play to their role in stimulating innovation.

Article 40

The state encourages enterprises to carry out the following activities:

(1) establishing internal R&D institutions;

(2) cooperating with other enterprises, R&D institutions and institutions of higher education for joint research, establishing joint R&D bodies and platforms, setting up technology business incubators as well as innovation and entrepreneurship platforms, or conducting R&D through commissioned service;

(3) training, attracting and using scientific and technological personnel;

(4) jointly training personnel with expertise and highly skilled personnel, and recruiting graduates from institutions of higher education, by cooperating with R&D institutions, institutions of higher education, vocational colleges, or training institutions;

(5) setting up post-doctoral workstations or mobile stations; and

(6) combining science popularization activities with technological innovation and staff skills training, and setting up science popularization venues or facilities open to the public.

Article 41

The state encourages enterprises to strengthen original innovation, conduct technological cooperation and exchanges, increase investment in R&D and technological innovation, identify research topics independently, and carry out innovation activities.

The state encourages enterprises to make further innovation based on assimilating acquired technologies.

The R&D expenses incurred by enterprises in developing new technologies, products and processes may be deducted before tax in accordance with relevant regulations of the state. The depreciation of R&D instruments and equipment of enterprises may be accelerated.

Article 42

The state improves the multi-tiered capital markets, establishes and improves the mechanisms for promoting innovation, and supports qualified tech-based enterprises to use the capital market for their development.

The state strengthens guidance and policy support, broadens the sources of venture capital, and supports the development of business startups.

The state improves the public listing system for tech-based enterprises, provides them with smooth channels for seeking financing through domestic listing, and gives play to the role of the capital market in the financing of innovation.

Article 43

The following enterprises shall be entitled to preferential tax treatment in accordance with relevant regulations of the state:

(1) enterprises engaged in the R&D and manufacturing of high-tech products;

(2) small and medium-sized tech-based enterprises;

(3) venture capital enterprises that invest in tech-based startups; and

(4) other enterprises related to scientific and technological progress as specified by laws and administrative regulations.

Article 44

The state supports the development and operation of public R&D platforms, science and technology intermediaries, as well as innovation and entrepreneurship service institutions.

Public R&D platforms, science and technology intermediaries, as well as innovation and entrepreneurship service institutions shall provide services for technological innovation of small and medium-sized enterprises.

Article 45

The state protects the intellectual property rights of enterprises obtained through R&D. Enterprises shall constantly improve the quality and effectiveness of intellectual property, and enhance their innovation capacity and market competitiveness.

Article 46

State-owned enterprises shall improve the mechanism for offering incentives and imposing constraints by establishing an R&D input system, a distribution system and an assessment system which are conducive to technological innovation.

The leading person of a state-owned enterprise shall be responsible for the technological progress of the enterprise. The performance assessment of the leading person shall include factors such as investment in innovation, innovation capacity building, and innovation outputs.

Article 47

Local governments at or above the county level and their relevant administrative departments shall create a market environment enabling fair competition and technological progress of enterprises.

Relevant administrative departments of the State Council and provincial governments shall adopt industrial, fiscal, financial, energy, environmental, and climate change policies that guide and encourage enterprises to develop new technologies, products and processes, upgrade technologies and equipment, eliminate obsolete equipment and processes, and stop manufacturing products with outdated technologies.

Chapter V Research and Development Institutions

Article 48

The state makes overall planning for the development of R&D institutions, and improves the R&D systems.

The state builds national laboratories in major scientific and technological fields that have an overall bearing on national security as well as economic and social development, establishes a laboratory system led by national laboratories and supported by national key laboratories, and improves the support mechanism to ensure stable funding.

R&D institutions established with fiscal funds shall focus on serving national strategic needs, and provide supply of public benefit-related technologies and technological support for emergency response.

Article 49

Natural persons, legal persons and unincorporated organizations have the right to establish R&D institutions according to law. Overseas organizations or individuals may set up R&D institutions in China according to law, independently or together with organizations or individuals in China.

R&D institutions engaged in basic research, frontier technology research and public benefit-related technology research may be established with fiscal funds. The layout of such institutions established with fiscal funds shall be improved to avoid duplication.

R&D institutions and institutions of higher education may set up post-doctoral mobile stations or workstations. R&D institutions may set up branches abroad according to law.

Article 50

R&D institutions shall enjoy the following rights:

(1) organizing or participating in academic activities according to law;

(2) in accordance with relevant regulations of the state, independently identifying R&D priorities and projects, and independently deciding internal management affairs such as the use of funds, institutional setup, performance assessment and remuneration, academic titles, commercialization of R&D results and distribution of the proceeds, posts, as well as personnel recruitment and mobility;

(3) jointly carrying out activities such as R&D, technological consultation and technological services with other R&D institutions, institutions of higher education and enterprises;

(4) receiving donations and obtaining funding; and

(5) other rights provided by laws and administrative regulations.

Article 51

R&D institutions shall formulate their articles of association according to law, and carry out activities in accordance with the functions and business scope specified therein. They shall improve their research integrity and conduct, establish a management system for research integrity and scientific ethics, and abide by the code of conduct for research activities. They shall not organize, participate in or support superstitious activities.

R&D institutions established with fiscal funds shall serve national goals and public interests. Where conditions permit, they shall open their science popularization venues or facilities, and organize science popularization activities.

Article 52

R&D institutions established with fiscal funds shall establish a modern management system characterized by clearly defined responsibilities, appropriate assessment methods, openness and orderliness, and rule-based management. They shall implement a system of presidents or directors assuming full responsibilities, establish a science and technology committee-based consultation system and a staff congress-based supervision system, invite external experts to participate in the management, and accept public oversight. The presidents or directors shall be recruited through competition.

Article 53

The state improves the evaluation system for R&D institutions established with fiscal funds. The evaluation results shall be used as the basis for the establishment, support, adjustment and termination of such institutions.

Article 54

R&D institutions established with fiscal funds shall establish and improve a resource sharing mechanism to promote effective use of scientific and technological resources.

The state encourages R&D institutions established by non-governmental sector to share their scientific and technological resources within a reasonable scope.

Article 55

The state encourages enterprises and other entities in the non-governmental sector to set up R&D institutions on their own, and protects the legitimate rights and interests of such institutions.

R&D institutions established by non-governmental sector have the right to equally compete for and participate in projects fiscally funded through scientific and technological programs in accordance with relevant regulations of the state.

The state improves the preferential tax regime for non-profit R&D institutions established by non-governmental sector.

Article 56

The state supports the establishment of new forms of innovation actors such as novel R&D institutions, improves the development model to ensure diversified sources of investment, a modern management system, market-based operation and flexible employment, and guides such innovation actors to focus on scientific research, technological innovation and R&D services.

Chapter VI Scientific and Technological Personnel

Article 57

The state fosters a social environment that respects and values talent, an institutional environment that is fair, equitable and competitive, and a living environment that offers appropriate remuneration and strong support. This way, the state creates favorable conditions that allow scientific and technological personnel to devote themselves to research.

The state highlights the importance of scientific and technological personnel, and takes multiple measures to foster professionals, support their involvement in innovation and research, and tap their full potential. Unfair treatment of scientific and technological personnel and their R&D results in any form is prohibited.

Article 58

The state accelerates the cultivation of talent of strategic importance. The state optimizes the structure of scientific and technological personnel, improves the mechanisms for cultivating, identifying, recruiting, using and assessing innovators, such as strategic scientists and leading scientists, and supports them with special policies on career progression, research conditions and management mechanisms.

Article 59

The state improves the mechanisms for educating and training innovative personnel, making more effort to stimulate scientific curiosity in basic education, cultivating technological personnel through vocational education, providing more resources to higher education to foster innovators, and increasing the reserve of strategic scientific and technological personnel.

Article 60

Governments at all levels, enterprises, public institutions, and social organizations shall improve the remuneration mechanism to reflect the value of innovation elements such as knowledge and technology, optimize the salary structure, and establish a regular pay rise mechanism, to raise the income of scientific and technological personnel. Generous benefits and relevant honors shall be awarded to scientific and technological personnel with outstanding contributions.

Scientific and technological personnel of R&D institutions established with fiscal funds and institutions of higher education may engage in part-time work and receive lawful income with the consent of their employers, on the premise that they have performed due obligations and completed their own tasks and that there is no conflict of interest. The rewards and payment for activities including technological development, consultation and services shall be granted in accordance with relevant regulations on the commercialization of R&D results.

The state encourages R&D institutions, institutions of higher education, and enterprises to incentivize scientific and technological personnel by means of equity, stock option and dividend schemes.

Article 61

Governments at all levels, enterprises and public institutions shall guarantee the right of scientific and technological personnel to receive continuing education, and create conditions for the rational, unimpeded and orderly mobility of scientific and technological personnel to fully tap their expertise.

Article 62

Scientific and technological personnel may choose their employers, compete for posts, and obtain corresponding positions or academic titles according to their academic achievements and professional competency.

Scientific and technological personnel shall abide by their commitments, fulfill their responsibilities, and complete the duties called for by their positions or academic titles.

Article 63

The state implements a categorized assessment system for scientific and technological personnel, under which different standards and methods shall be adopted to assess the performance of personnel engaged in different scientific and technological activities by highlighting their innovation value, ability and contribution and by reasonably determining the remuneration package, allocating academic resources, and setting the assessment cycle. This way, the state forms an assessment system that allows scientific and technological personnel to devote themselves to research and innovation and bring about their creativity.

Article 64

Relevant administrative departments of science and technology, enterprises, and public institutions shall improve the management system for scientific and technological personnel, enhance service awareness and capacity, optimize the management process, avoid repeated inspections and evaluations, and ensure that scientific and technological personnel have sufficient time to engage in research instead of being overburdened with project application, document submission and cost reimbursement.

Article 65

For scientific and technological personnel working in hardship and remote areas or in harsh and dangerous environments, their employers shall pay them subsidies in accordance with relevant regulations of the state, provide occupational health and safety services necessary for their posts or workplaces, and create conditions for their continuing education and training.

Article 66

Young, ethnic minority, and female scientific and technological personnel enjoy equal rights to compete for professional positions, participate in science and technology assessment, undertake R&D projects, and receive continuing education. Scientific and technological personnel in their senior years shall be encouraged to play an active role in promoting scientific and technological progress.

Governments at all levels, enterprises and public institutions shall create conditions for the growth of young scientific and technological personnel, and encourage them to explore and reach their full potential. The identification, training and use of young scientific and technological personnel shall be an important factor in the assessment of the work for scientific and technological progress.

Governments at all levels, enterprises and public institutions shall improve the mechanism for training, assessing and incentivizing female scientific and technological personnel, provide care for those in their maternity period, and encourage them to play a greater role in promoting scientific and technological progress.

Article 67

Scientific and technological personnel shall firmly maintain the spirits of Chinese scientists, which are patriotism, innovation, truth-seeking, dedication, teamwork, and enthusiasm for fostering young talent. They shall adhere to the craftsmanship spirit, be devoted to their work, abide by the code of academic, ethical and professional conduct, and stay honest and trustworthy. They shall not engage in research misconduct, or participate in or support superstitious activities.

Article 68

The state encourages scientific and technological personnel to engage in free exploration and take risks with courage, and creates an atmosphere that promotes innovation and tolerates failure. If the original records prove that the scientific and technological personnel who undertook exploratory and high-risk projects have exercised due diligence but are still unable to complete the projects, they shall be exempted from responsibility.

Article 69

The records of research integrity of scientific and technological personnel shall serve as an important basis for promotion to professional positions, conferment of professional titles, review of project proposals, and awarding of scientific and technological prizes.

Article 70

Scientific and technological personnel have the right to establish or participate in science and technology societies according to law.

Science and technology associations and societies shall facilitate academic exchanges, advance the development of disciplines, promote research and innovation, popularize science and technology, train personnel with expertise, provide consulting services, strengthen the self-discipline of scientific and technological personnel, and safeguard the legitimate rights and interests of scientific and technological personnel in accordance with their articles of association.

The legitimate rights and interests of science and technology associations and societies are protected by law.

Chapter VII Regional Innovation

Article 71

The state makes overall planning for the regional distribution of scientific and technological resources, aligns national resources with local development needs, and adopts multiple ways to support regional innovation.

Article 72

Governments at or above the county level shall support R&D, create conditions for commercialization of R&D results, and provide a favorable innovation environment for regional innovation-driven development.

Article 73

Scientific and technological programs related to industrial development as formulated by the governments at or above the county level and their relevant administrative departments shall reflect the needs of industrial development.

Enterprises shall be encouraged to equally compete for and participate in projects under the scientific and technological programs formulated by governments at or above the county level and their relevant administrative departments. Enterprises, R&D institutions, and institutions of higher education shall be encouraged to jointly implement projects that meet the needs of industrial development and have a clear market potential.

The implementation of major local scientific and technological programs shall be aligned with the deployment of major national tasks.

Article 74

The State Council may approve the establishment of national high-tech industry development zones, national innovation demonstration zones, and other scientific and technological parks as appropriate. The State Council shall provide guidance and support in the development of such zones and parks, and enable their distinctive features and advantages to produce agglomeration and demonstration effects.

Article 75

The state encourages governments at or above the county level with necessary conditions to develop major innovation bases and platforms, establish platforms for innovation and entrepreneurship, and build regional innovation hubs according to the national development strategy and local development needs.

The state supports the development of science, technology and innovation centers and comprehensive science centers in regions with necessary conditions, and enables such centers to function as locomotives of regional innovation, pioneers of institutional reform, and players in global cooperation.

Article 76

The state establishes a mechanism for regional innovation cooperation and mutual assistance, and encourages local governments at all levels and their relevant administrative departments to carry out cross-regional innovation cooperation, and promote the rational flow and efficient concentration of innovation factors.

Article 77

Major regions of national strategic importance may rely on regional innovation platforms to establish a benefit sharing mechanism, to facilitate the free flow of factors such as talent, technology and capital, promote the sharing of scientific instruments, equipment and infrastructure as well as scientific, engineering and technological information resources, and to improve the efficiency of regional commercialization.

Article 78

The state encourages local governments to explore regional innovation models. Local governments shall respect the inherent laws of regional concentration of innovation factors, and choose an innovation path based on regional characteristics.

Chapter VIII International Scientific and Technological Cooperation

Article 79

The state promotes open, inclusive, and mutually beneficial international cooperation and exchanges on science and technology to support the building of a community with a shared future for humanity.

Article 80

The government of the People's Republic of China shall develop scientific and technological cooperation and exchanges with foreign governments and international organizations.

The state encourages innovators such as R&D institutions, institutions of higher education, science and technology societies, enterprises, and scientific and technological personnel to carry out international cooperation and exchanges, actively participate in scientific research, and promote the flow of international scientific and technological resources, so as to pursue scientific and technological openness and cooperation at a higher level and promote scientific and technological progress of the world.

Article 81

The state encourages enterprises, public institutions, and social organizations to build platforms and provide services for international science, technology and innovation cooperation through various channels.

The state encourages enterprises, public institutions, social organizations, and scientific and technological personnel to participate in or found international organizations of science and technology to enhance international cooperation and exchanges.

Article 82

The state uses multiple ways to support outstanding scientific and technological personnel at home and abroad in collaborative R&D to meet the common challenges of humanity and explore the frontiers of science.

The state supports R&D institutions, institutions of higher education, enterprises, and scientific and technological personnel in participating in or initiating international mega-science programs and projects.

The state improves the mechanisms for the protection of intellectual property rights and for the review of scientific and technological ethics and security in international research cooperation.

Article 83

The state increases the openness of scientific and technological programs to international cooperation, encourages foreign-funded enterprises and foreign scientific and technological personnel in China to undertake and participate in projects under scientific and technological programs, and improves the mechanism for overseas scientific and technological personnel to participate in such projects.

Article 84

The state improves relevant social services and support measures, to encourage Chinese scientific and technological personnel working abroad to return to China and attract foreign scientific and technological personnel to engage in R&D in China.

R&D institutions and other scientific and technological organizations may employ overseas scientific and technological personnel according to their needs. R&D institutions established with fiscal funds and institutions of higher education that employ overseas scientific and technological personnel to engage in R&D shall provide convenience for their work and life.

Outstanding foreign scientific and technological personnel who are engaged in R&D in China may obtain permanent residency in China or Chinese nationality on a priority basis in accordance with relevant regulations of the state.

Chapter IX Support Measures

Article 85

The state increases funding from fiscal revenue, and formulates policies in areas such as industrial development, finance, taxation, and government procurement to encourage and guide private capital investment, in order to ensure the sustained and steady growth of the gross domestic expenditure on R&D.

Article 86

The state gradually raises the overall level of investment in science and technology. The state's fiscal investment in science and technology shall increase faster than the growth rate of the state's regular revenue. The gross domestic expenditure on R&D shall account for an appropriate proportion of the GDP, and shall gradually increase.

Article 87

Fiscal funds for science and technology shall be mainly used for the following matters:

(1) development of basic conditions and facilities for R&D;

(2) basic research and advanced interdisciplinary research;

(3) frontier technology research, public benefit-related technology research, and key general-purpose technology research, which have strategic, fundamental and forward-looking impacts on economic and social development;

(4) application of key general-purpose technologies, and demonstrative application of high-tech in industries;

(5) R&D related to ecological environment and people's life and health, as well as the wide application of the results of such R&D;

(6) R&D of new crop varieties and agricultural technologies, and the wide application of the results of such R&D;

(7) cultivation, attraction and use of scientific and technological personnel; and

(8) science popularization.

The state provides R&D institutions established with fiscal funds with support in funding, means for experiments, and other aspects.

Article 88

National scientific and technological programs shall be established in accordance with national needs. They shall focus on major national strategic tasks, and follow the inherent laws of research, innovation and commercialization.

The state enhances professional management of scientific and technological programs by establishing a coordination mechanism and a performance evaluation system.

Article 89

The state sets up funds to support small and medium-sized enterprises in technological innovation and the commercialization of their innovation results.

When necessary, the state may set up other non-profit funds that support basic research, public benefit-related technology research and international joint research, to finance scientific and technological progress.

Article 90

Entities and individuals that engage in the following activities are entitled to preferential tax treatment in accordance with relevant regulations of the state:

(1) technological development, transfer, licensing, consultation and services;

(2) import of products for R&D or science popularization which are not available in China or where the performance of domestic products do not meet the needs;

(3) import of key equipment, raw materials, spare parts and components that are not available in China, for the implementation of major national scientific and technological projects or major projects under national scientific and technological programs;

(4) science popularization activities organized by science popularization centers and bases that are open to the public;

(5) donations for scientific and technological activities; and

(6) other R&D and commercialization activities specified by laws and relevant regulations of the state.

Article 91

In government procurement, if the function, quality and other indicators of innovative products and services produced by natural persons, legal persons and unincorporated organizations in China meet the needs, such products and services shall be procured. If such products and services are marketed for the first time, the government shall be the first buyer, and shall not restrict the procurement on the ground of commercial performance.

If the products needed by the government are yet to be developed, the procurement shall proceed through ordering. The procurer shall select, mainly through competition mechanism, R&D institutions, institutions of higher education or enterprises for the development of such products, and make purchase according to the agreement after qualified products are developed.

Article 92

The state encourages financial institutions to provide financing secured with intellectual property, and encourages and guides financial institutions to support the commercialization of R&D results and the development of high-tech industries when issuing credit and making investment. The state encourages insurance institutions to develop insurance products according to the needs of high-tech industries to promote the application of new technologies.

Article 93

The state integrates and sets up national research and experiment bases under the principle of “overall planning and optimal structure”.

The state encourages the establishment of comprehensive experiment service institutions that can either provide, or entrust others to provide experiment services for R&D institutions, institutions of higher education, enterprises, and scientific and technological personnel.

Article 94

The state, in light of the needs for scientific and technological progress, coordinates the purchase of large scientific instruments and equipment under the principles of “overall planning, open access, optimized resource allocation, comprehensive integration, leadership by government, and multi-stakeholders”. Joint appraisal shall be carried out as to instruments and equipment purchased mainly with fiscal funds.

Article 95

The state strengthens the development of academic journals, improves the exchange mechanisms for research papers and scientific and technological information, promotes open science, and facilitates scientific and technological exchanges and dissemination.

Article 96

The state encourages organizations and individuals at home and abroad to fund R&D and science popularization by donating property or setting up scientific and technological funds.

Article 97

In the process of making pioneering efforts in science and technology management reform, R&D, and commercialization of R&D results, the leading persons of R&D institutions established with fiscal funds, institutions of higher education and enterprises shall be exempted from responsibility for mistakes or inaccurate decisions, provided that they have exercised due diligence, and fulfilled due responsibility for supervision and management, and have not sought illegal benefits.

Chapter X Supervision and Management

Article 98

The state strengthens law-based science and technology administration, and improves research integrity and conduct. The state improves the systems for research integrity, science and technology supervision, and governance of scientific ethics, to create a favorable innovation environment.

Article 99

The state improves the rules and procedures for science and technology-related decision-making, and establishes a sound consultation mechanism for decision-making, to ensure that decisions are made in a sound, democratic and law-based way.

The state reforms and improves the consultation system for major decision-making on science and technology. Consultations shall be held when formulating plans and major policies on scientific and technological development and when identifying major scientific and technological projects or major projects closely related to science and technology, involving scientific and technological personnel and think tanks, with wider public participation, to ensure that decisions are made based on sound evaluation.

Article 100

The state strengthens the performance management of fiscal funds for science and technology to improve efficient allocation and use. The management and use of such fiscal funds shall be subject to supervision and inspection by audit and finance authorities.

Administrative departments of science and technology and other relevant administrative departments shall tighten the supervision of the implementation of scientific and technological programs established with fiscal funds, and strengthen the coordination, evaluation and supervision of funding for research projects.

No organization or individual shall obtain, by means of false or fraudulent pretenses or representation, fiscal funds for science and technology, or embezzle, misappropriate or withhold such funds.

Article 101

The state establishes a classified management mechanism for projects under scientific and technological programs, and strengthens the assessment and evaluation of project performance. Decisions on funding projects under scientific and technological programs established with fiscal funds shall be made in accordance with the problem-, goal- and demand-oriented criteria, and project undertaking parties shall be selected based on merit and in accordance with relevant regulations of the state.

The state establishes an information system for science and technology management. The state establishes a database of evaluators, improves the evaluation system for projects under scientific and technological programs, and the selection, avoidance, confidentiality and accountability systems for evaluators.

Article 102

The administrative department of science and technology under the State Council, together with other relevant administrative departments, shall establish an information system and a resource bank for scientific and technological assets such as research facilities, instruments and equipment, and for scientific and technological resources such as scientific literature, scientific data, natural resources for scientific research, and science popularization resources, and shall publicize information about their distribution and usage in a timely manner.

The management institutions of scientific and technological resources shall publicize the rules for open access to managed resources and information about their usage, and shall arrange usage according to the rules. Where laws and administrative regulations require confidentiality, such laws and administrative regulations shall prevail.

The management institutions of scientific and technological resources shall not infringe upon the intellectual property rights of users of these resources, and shall set the charging standards in accordance with relevant regulations of the state. Other rights and obligations between the management institutions and the users shall be set by agreement.

Article 103

The state establishes a scientific ethics committee. The state improves the rules and regulations on scientific ethics, strengthens education and research on scientific ethics, and improves relevant review, evaluation and oversight systems.

R&D institutions, institutions of higher education, enterprises, and public institutions shall fulfill the responsibility as the principal management entities for scientific ethics. They shall establish a scientific ethics review mechanism in accordance with relevant regulations of the state, and carry out ethics review of scientific and technological activities.

Article 104

The state strengthens research integrity. The state establishes credit records on scientific and technological projects and an information system for research integrity, and improves the mechanism for preventing, investigating and handling research dishonesty, which places equal emphasis on prevention and punishment, and self-discipline and supervision.

Local governments at or above the county level and relevant administrative departments shall take measures to strengthen research integrity. Enterprises, public institutions, and social organizations shall fulfill the responsibility as the principal management entities for research integrity.

No organization or individual shall fabricate or falsify research results, publish or disseminate false research results, or engage in the trading, ghostwriting or third-party submission of academic papers, experimental research data, proposals, reports, or other documents of projects under scientific and technological programs.

Article 105

The state improves the science and technology statistics system and the national innovation survey system to provide an overview of national scientific and technological activities and to monitor and evaluate the national innovation capacity.

The state improves the science and technology report system. Undertaking parties of fiscally funded projects under scientific and technological programs shall submit relevant reports in a timely manner according to relevant regulations.

Article 106

The state implements a science and technology confidentiality system, and builds the capacity to maintain confidentiality to protect science and technology secrets involving national security and interests.

The state implements according to law export control on scientific and technological resources such as important biological germplasm, genetic resources and data resources, and on core technologies in key fields.

Article 107

R&D and commercialization activities that endanger national security, public interests or human health, or compromise research integrity or scientific ethics are prohibited.

Scientific and technological activities shall comply with their management rules. Organizations and individuals that seriously violate the management rules shall be recorded in the database for serious research dishonesty by the administrative departments of science and technology and other relevant administrative departments.

Chapter XI Legal Liability

Article 108

Where an administrative department of science and technology or any of its staff member or any other person performing public duties according to law, in violation of the provisions of this Law, abuses power, neglects duty, or engages in malpractices for personal gains, the directly responsible persons in charge and other persons directly responsible shall be sanctioned in accordance with law.

Article 109

Where any entity or individual, in violation of the provisions of this Law, abuses power to hamper, restrict or suppress R&D activities, or to repress, marginalize or make things difficult for scientific and technological personnel, the directly responsible persons in charge and other persons directly responsible shall be sanctioned in accordance with law.

Article 110

Where any entity or individual, in violation of the provisions of this Law, obtains by means of false or fraudulent pretenses or representation, embezzles, misappropriates or withholds fiscal or donated funds for scientific and technological progress, the competent administrative department shall order the entity or individual to make rectification and refund relevant fiscal or donated funds, and give the entity or individual a warning or public reprimand, and may suspend the allocation of funds, and terminate or cancel relevant scientific and technological activities. If the circumstances are serious, the entity or individual shall be fined according to law, and be prohibited from undertaking or participating in any fiscally funded scientific and technological activity within a certain period of time. The directly responsible persons in charge and other persons directly responsible shall be given administrative penalties and be sanctioned according to law.

Article 111

Any entity, in violation of the provisions of this Law, fails to fulfil the obligation to provide open access to scientific and technological resources, such as large scientific instruments and equipment, which are purchased with fiscal funds and state-owned capital, shall be ordered to make rectification and be given a warning or public reprimand by the competent administrative department, and the directly responsible persons in charge and other persons directly responsible shall be sanctioned in accordance with law.

Article 112

Any entity or individual that, in violation of the provisions of this Law, engages in R&D or commercialization activities endangering national security, public interests or human health, or compromising research integrity or scientific ethics, shall be ordered to make rectification by the competent administrative department. If the entity or individual has obtained fiscal funds for scientific and technological progress or there are illegal proceeds, the competent administrative department shall terminate or cancel relevant scientific and technological activities, recover the fiscal funds, and confiscate the illegal gains. If the circumstances are serious, the competent administrative department shall make public such illegal acts, impose administrative penalties and sanctions according to law, and prohibit the entity or individual from, within a certain period of time, undertaking or participating in any fiscally funded scientific and technological activity and applying for any administrative permit for relevant scientific and technological activity. The directly responsible persons in charge and other persons directly responsible shall be given administrative penalties and be sanctioned according to law.

Any entity or individual that, in violation of the provisions of this Law, fabricates or falsifies research results, publishes or disseminates false research results, or engages in the trading, ghostwriting or third-party submission of academic papers, and experimental research data, proposals, reports, or any other documents of projects under scientific and technological programs, shall be given a warning or public reprimand, and be fined by the competent administrative department. The illegal gains, if any, shall be confiscated. If the circumstances are serious, the relevant permit shall be revoked.

Article 113

Where any entity or individual that, in violation of the provisions of this Law, engages in scientific and technological activities that breach relevant management rules, the competent administrative department shall order the entity or individual to make rectification within a time limit, and may recover relevant fiscal funds, issue a warning or public reprimand, suspend the allocation of funds, and terminate or cancel relevant fiscally funded scientific and technological activities. If the circumstances are serious, the entity or individual shall be prohibited from undertaking or participating in any fiscally funded scientific and technological activity within a certain period of time, and be disqualified from managing any fiscally funded scientific and technological activity within a certain period of time. The directly responsible persons in charge and other persons directly responsible shall be sanctioned according to law.

Article 114

Where any entity or individual, in violation of the provisions of this Law, obtains national scientific and technological awards by fraudulent means, the competent administrative department shall revoke relevant awards, recover relevant medals, certificates and bonuses, and impose sanctions on the entity or individual according to law.

Where any nominating institution or individual, in violation of the provisions of this Law, provides false data or documents to help others obtain national scientific and technological awards, the competent administrative department shall issue a public reprimand. If the circumstances are serious, the nomination right of the institution or individual shall be suspended or revoked, and the institution or individual be sanctioned according to law.

Article 115

Where this Law provides no administrative penalty for a violation of the provisions of this Law, while another relevant law or administrative regulations do, the provisions of this other relevant law or the administrative regulations shall apply. Where a violation of the provisions of this Law incurs property loss or other damage, the violator shall bear civil liability according to law. Where a violation of the provisions of this Law constitutes an act against the administration of public security, a penalty for administration of public security shall be imposed according to law. Where a violation of the provisions of this Law constitutes a crime, the offender shall be held criminally liable according to law.

Chapter XII Supplementary Provisions

Article 116

Other matters related to scientific and technological progress involving national defense shall be provided for by the State Council and the Central Military Commission.

Article 117

This Law shall come into force as of January 1, 2022.