Local state-owned enterprises in China have reported a significant 10.4% increase in research and development (R&D) spending, totaling 249.57 billion yuan (approximately $35 billion) in the first half of 2024. This surge, as announced by the State-owned Assets Supervision and Administration Commission of the State Council, underscores the country's commitment to enhancing its scientific and technological innovation capabilities.
Zhang Yuzhuo, chairman of the commission, highlighted that the heightened investment comes as part of a broader strategy to accelerate innovation within state-owned enterprises. Earlier this week, Zhang revealed that local government commissions overseeing state-owned assets have introduced a series of policy measures aimed at fostering scientific and technological advancements.
For example, in Shandong Province, enterprises are incentivized to offer wage increases to scientific and technological talent and provide tailored remuneration for key personnel. Additionally, in Beijing and Xiamen, pilot policies have been implemented to establish R&D reserve funds for state-owned enterprises.
The commission is also focused on optimizing institutional frameworks to promote indigenous innovation, encouraging diverse capital investments, and supporting the growth of high-quality venture capital institutions. These efforts are designed to boost innovation in basic research and facilitate the industrialization of innovative outcomes.
In the first half of the year, local state-owned enterprises reported impressive financial performance, with total business revenues reaching 19.2 trillion yuan and total profits amounting to 826.78 billion yuan. Fixed asset investments also stood at 2.9 trillion yuan, reflecting robust economic activity within these enterprises.
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Local SOEs in China report 10.4% rise in R&D spending in H1 2024
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