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No.169

 

CHINA  SCIENCE  AND  TECHNOLOGY
NEWSLETTER
The Ministry of Science and Technology
People's Republic of China

N0.169 November 20,1998

 
IN THIS ISSUE

  • Some Facts on S&T Resources of China's Higher Learning Institutions - 97

  • Sectional Breakthroughs for China's Mobile Tele Industry

  • China's Guttama Gum R&D: World Advanced

  • Favored Policies for Foreign Investors in China's Civil Aviation


SPECIAL ISSUE

Some Facts on S&T Resources of China's Higher Learning Institutions - 97

   Scientific Personnel

    In 1997, there were about 600,000 S&T personnel in the country working for higher learning institutions. 530,000 of them were scientists or engineers, 88.2% of the total. The total S&T population working for universities directly subordinated to Ministry of Education (MOE) reached 68,000, of whom 60,000 are scientists or engineers, 88.5% of the total.

   S&T Budget

    In 1997, China's higher learning institutions had acquired 7.05 billion yuan for their S&T activities, of which 3.48 billion yuan (49.4%) were allocated by the government; in the same time, higher learning institutions subordinated to MOE had a budget totaled 2.47 billion yuan, of which governmental appropriations took 1.12 billion yuan, 45.3% of the total.

   R&D Institutions

    In 1997, there were altogether 1,590 legally registered R&D institutions under the jurisdiction of universities in the country. Research fellows directly working for R&D institutions reached 27,849, calculated on full time basis. Of them, 12,984 had senior academic titles who had trained 20,055 graduate students. Under the MOE system, there were 156 R&D institutions with a population of 6,315, of whom 3,457 have senior academic qualifications and trained 8,352 graduate students.

   S&T Research Topics

    In 1997, higher learning research communities had selected 114,000 research topics with 185,000 persons involved in (calculated on full time basis). In the same year, the budget allocated to these research activities reached 4.95 billion yuan; Universities of Ministry of Education had invested 44,000 persons and 2.09 billion yuan in working on 25,000 research topics.

   International S&T Exchanges

    In 1997, there were 19,694 university people who attended international seminars or symposiums and 18,282 papers exchanged internationally. In the same year, higher learning institutions in the country dispatched 6,634 visiting scholars to overseas and received 6,889 visiting scholars from abroad, and sent 1,090 graduate students to study abroad. Under the MOE system, 6,598 people attended international symposiums with 5,870 papers exchanged; 1,746 visiting scholars were sent and 826 received from abroad; graduate students sent to study abroad reached 168 in number.

   Research Results and Technology Transfer

    In 1997, 5,046 monographs and 236,000 papers were published with 6,952 research results granted with verification approval and 1,022 items with patent rights. In the same year, 4,248 technology transfer contracts were signed with a total amount reaching 650 million yuan. Under the MOE system, 782 monographs and 44,000 papers were published with 815 research results granted with verification approval and 421 items with patent rights. In addition, 1,225 technology transfer contracts were signed with an amount totaled 180 million yuan.

   S&T Awards

    In 1997, higher learning institutions in the country were conferred with 30 natural science awards, 58.8% of the total, 45 national invention awards, 47.4% and 140 national S&T progress awards, 32.5%. Under the MOE system, 13 natural science awards, 25.5% of the total, 16 national invention awards, 16.8 % and 36 national S&T progress awards, 8.4%.

   S&T Spin-offs

    In 1997, there were 1,611 S&T enterprises spun off from universities with a total business volume reaching 13.14167 billion yuan, tax paid 568.75 million yuan and after-tax profits 1.06540 billion yuan. Under the MOE system, the same indicators were 392 with 7.43281 billion yuan, 255.87 million yuan and 600.52 million yuan respectively.

Sectional Breakthroughs for
China's Mobile Tele Industry

    Thanks to last two year efforts, digital mobile telecommunication products developed by Chinese national telecommunication industry have applauded for sectional breakthroughs. Started from this year, China has entered the stage of practical application of its own made mobile products, which hallmarked that China, the third largest country in the world in terms of its mobile telephone network scale, will end up its dependence on foreign products running over its mobile network.

    China's telecommunication industry enjoying a fast development since opening and reform age has witnessed fastest growth for its mobile sector. At the end of September 1998, mobile telephone subscribers in the country have gone beyond 20 million in number. It is expected that the number will in go further up to 45-50 million next year. Strong market demand has made the state put the investment in the sector larger than that in programmed switching system, amounted to more than 60 billion yuan.

    A number of Chinese enterprises started from 1997 to develop digital mobile telecommunication equipment of their own intellectual patents. Following GSM 900, 1800 and CDMA systems developed by Datang Telecommunication, Shenzhen based Huawei Techniques and Orient Telecommunication have also worked out mobile telecommunication systems of their own intellectual property rights. Heavily scheduled testing and verification activities have been completed with their results showing that Chinese made mobile equipment is of technical conditions and capacity to equip China's mobile telecommunication network.

RESEARCH AND DEVELOPMENT

Qinghai-Tibet Plateau Medical Science:
A World Member

    Studies on adaptation mechanism to low oxygen environment, investigations in plateau dominant diseases and prevention and treatment and prevention of early plateau decaying of the population dwelt on Qinghai-Tibet Plateau have achieved remarkable results attracting the world attention in this field.

    China is the country in the world having most plateau terrain such as Qinghai-Tibet Plateau, Yunnan-Guizhou Plateau, Loess Plateau and Inner Mongolia Plateau with one sixth of its total territories are located at 3000 m above sea level dwelt by 10 million people. Qinghai-Tibet Plateau, nicknamed as the third poles o f the world, has been deemed as a paradise for plateau medical research as the result of its unique geographic features.

    At present China has recorded 99% curing rate for two major life-threatening plateau diseases: plateau pneumonedema and necephaledema. Qinghai-Tibet Plateau Research Institute has proved through a great number of clinic cases that plateau diseases can be cured locally within a time period of one week and 80 of patients are conditionally appropriate to remain working on the plateau, which has changed the old concepts that only by removing the patients to the place of lower altitude can plateau diseases be cured and that cured people shall not be back to plateau again. Chinese plateau medical experts have also revealed mysteries explaining why Tibetan natives are able to work with great intensity and run for herdsmanship easily. Furthermore, they developed more than ten medicines fighting against oxygen lacing and early decaying.

China's Guttama Gum R&D: World Advanced

    China's studies on guttama gum have witnessed major breakthroughs on its material engineering theory, which led to improved techniques such as control of critical transfer in sulphuration process and gum abstraction with basically industrialized production process for phase one and phase two feature applications. These earmarked China's world advanced level in guttama gum research and development.

    It is briefed that guttama is a kind of precious woody Chinese traditional medical herb grown in Sichuan, Guizhou and Hunan with their reserves amounting to 99% of the world total. In ancient China, guttama bark was used to be a medicine for bone strengthening, liver and kidney nourishing and blood pressure reduction. Thanks to their more than a decade research, Chinese scientists have abstracted the gum, a white silk like substance from its bark, seeds and leaves and revealed for the first time internationally the plastic double features of such high molecule material, which shaped original theory on guttama gut material engineering. Up to date, Chinese scientists have used the gum for three major applications: thermal plastic material, thermal elastic material and rubber elastic material.

    Experts believe that guttama gum is of its unique abrasion resistance, elasticity and mixture features in comparison with natural or synthetic rubbers and can be found extensive applications in telecommunication, transport, architecture, space, national defense and daily products, which will make it an important new material to be developed in the 21st century.

POLICY GUIDE

Foreign Investors Encouraged to Make
Money in Mid-West Part of China

    To further open the middle and west part of the country to the outside world and improve the foreign capital utilization in the region, China has seen this year a line of policies published by State Council to encourage foreign businesses to invest in the region. The major spirit of these policies are as follows:

    1. In accordance with the Interim Regulations on Guiding Foreign Investment Orientation, projects good for taking advantage of human and natural resources in the middle and west region and agreeable with the state industrial policies shall be listed in the encouraged foreign investments. Such projects, upon the approval of authorities concerned, will enjoy tax exemption for the equipment imported for their own usage and preferential treatment for import added value tax;

    2. Projects in the restriction category with limited equity ownership for foreign investors could be scaled down in terms of conditions for establishment and extent of market share ;

    3. The State will prepare a number of priority projects in the fields of agriculture, water resources, transport, energy, raw materials and environmental protection to attract foreign investment in the region and enhance the corresponding financial and policy support;

    4. Encourage military enterprises working on civil products and large and medium state enterprises to upgrade their technologies and facilities by using foreign capital;

    5. Encourage those who have invested in the east to reinvest their money in the middle and west part of the country. Projects whose foreign equity share goes beyond 25% will enjoy the same preferential treatment as a foreign invested enterprise;

    6. The projects in certain fields recently opened by the state for experimental purposes may also have the same trial in west region. Upon the approval of the central government, capital cities in middle and west region may create their experimental basis for commerce, foreign trade and tourism. Capital cities in the middle and west region, coastal cities, economic and technical development zones, national high and new tech development zones and Shaanxi Yangling Agriculture Development Zone will enjoy preferential treatment policies as other coastal cities have. Like their counterpart in coastal regions, the approval right of the local government in middle and west region has also been extended to US$ 30 million;

    7. The state will further increase the proportion of IMF loans and preferential government loans from other countries used in the region.

Favored Policies for Foreign Investors
in China's Civil Aviation

    Chinese civil aviation industry that has witnessed great achievements in utilizing foreign capital has not long ago worked out better policies to attract foreign investment in the sector. Subject to the approval of the State Council, the new policies will be published soon.

    It is reported that in the past foreign investment were mainly directed in airplane and engine maintenance with insufficient investment in aviation fuel, catering and major structures of airfields such as air tower and flying area and a total blank for the foreign investment in airport as a whole. The said areas are o  great attractiveness to foreign investors. For example, Guangzhou Baiyun Airport whose loading and unloading volume ranks the third place in the country has been approved for its removing project with six foreign companies competing for the contract. In this context, new investment policies will tilt more to the flexibility of management mechanism and preferential treatment for foreign investment. These policies are oriented to attract foreign investment in the project o f great competitiveness as well as commercial profits. In the meanwhile, foreign investors will be allowed of more involvement in operational management of their invested businesses. On the contrary, aviation catering service of low technology content and basically saturated market will not be encouraged to be further expanded.

Export License for Private Businesses
and Research Institutions

   It is revealed by Ministry of Foreign Trade and Economic Cooperation (MOFTEC) that starting from January 1st 1999, any private enterprises and research institutions who are in line with requested conditions may submit their applications for import & export license on their own products to MOFTEC for approval.

    Mr. Hu Chusheng, MOFTEC's spokesman said that the policy is defined in the Interim Regulations on Granting Import & Export License to Private Enterprises and Research Institutions for their own products. He added that the initiative is aiming at maintaining the healthy development of non public economy and promote the involvement of private businesses and research institutions in international competition.

    According to the Regulations, private enterprises and research institutions in the definition are those who have been legally registered with the capital belonging to individual persons or enterprises controlled by individuals' own capital or to research institutions ( including independently invested, jointly invested , limited liability and shareholding).

    The Regulations have specified detailed requirements for credential assessment of private businesses and research institutions such as private enterprises legally registered shall have both its registration capital and net assets reach 8.5 million yuan; annual sales and export volumes shall keep at 50 million yuan and US$ 1 million respectively for two consecutive years (machinery and electronic manufactures: 30 million yuan and US$ 500,000); research institutions' annual sales shall reach 3 million yuan or above; high and new tech enterprises' annual sales, confirmed by authorities concerned at provincial level or above, shall amount to 30 million yuan (high and new tech enterprises of development nature 10 million yuan). All these enterprises or research institutions shall have their own professionals dealing with import & export of their own products.

    The Regulations added that to be granted with the licenses, qualified private enterprises shall submit a complete set of application documents and go through strict application and approval procedures. Upon being granted with import & export license, they may conduct their import & export businesses within the scope approved. 


       Comments or inquiries on editorial matters or Newsletter content should be directed to:Mr. Dong Jianlong, Department of International Cooperation, MOST 15B, Fuxing Road Beijing 100862, PR China  Tel: (8610)68512650 Fax: (8610) 68512594, or Mr. Wang Jianping, Editor,NEWSLETTER, 15 Fuxing Road Beijing 100038, PR China, Tel:(8610) 68515544 Ext. 2921