LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON SCIENCE AND TECHNOLOGY PROGRESS

The Standing Committee of the National People’s Congress

Order of the President Of the People’s Republic of China

No.4

The Law of the People’s Republic of China on Science and Technology Progress, adopted at the Second Meeting of the Standing Committee
of the Eighth National People’s Congress on July 2, 1993, is promulgated now, ande shall enter into force as of October 1, 1993.

President of the People’s Republic of China: Jiang Zemin

July 2, 1993

Law of the People’s Republic of China on Science and Technology Progress ContentsChapter I General Provisions

chapter II Science and Technology in Economic

Construction and Social Development

Chapter III High-tech Research and High-tech Industries

Chapter IV Basic Research and Applied Basic Research

Chapter V Research and Development Institutions

Chapter VI Scientific and Technical Workers

chapter VII Measures to Guarantee Science and

Technology Progress

Chapter VIII Science and Technology Awards

Chapter IX Legal Liability

Chapter X Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated in accordance with the Constitution with a view to promoting science and technology progress, assigning priority
to the development of science and technology and bringing the role of science and technology as the primary productive force into
full play in socialist modernization drive, so as to improve the service of science and technology to economic construction.

Article 2

The State shall practise a basic guideline of basing economic construction and social development on science and technology and orienting
science and technology undertakings to economic construction and social development.

Article 3

The State shall protect the freedom of scientific research, encourage scientific exploration and technological innovation so as to
raise its science and technology to an advanced level in the world.

The State and the whole society shall respect knowledge,esteem talent, value the creative work of scientific and technological personnel,
and protect intellectual property rights.

Article 4

The State shall, in compliance with the demands of scientific and technological progress and the socialist market economy, restructure
and improve the science and technology system,and establish a mechanism capable of effectively integrating science and technology
with economy.

Article 5

The State shall encourage scientific research and technology development, popularize and apply the achievements made in science and
technology, transform traditional industries,develop high-tech industries, and enhance activities employing science and technology
to serve economic construction and social development.

Article 6

The State shall disseminate scientific and technological knowledge to raise the scientific and cultural level of all the citizens.

The State shall encourage government organs, enterprises,institutions, social organizations and citizens to participate in and support
activities aimed at science and technology progress.

Article 7

The State Council shall formulate science and technology development programmes, determine major science and technology projects and
other major projects closely related to science and technology, and secure the coordination of science and technology progress with
economic construction and social development.

Opinions from scientific and technological workers shall be fully solicited in the course of formulating science and technology development
programmes and important policies and determining major science and technology projects and major projects closely related to science
and technology, and a principle of scientific decision-making process shall be followed.

Article 8

The administrative department in charge of science and technology under the State Council shall be responsible for the macroscopic
management and overall coordination of the nation-wide science and technology work. Other administrative departments concerned under
the State Council shall be responsible for the relevant science and technology progress work within the scope of their functions
and responsibilities as prescribed by the State Council.

Local people’s governments at various levels shall adopt effective measures to promote science and technology progress.

The State shall render assistance to minority nationality regions and remote and poor areas to accelerate the development of science
and technology thereof.

Article 9

The Government of the People’s Republic of China shall actively promote science and technology cooperation and exchanges with foreign
governments and international organizations,encourage research and development agencies, institutions of higher learning, social
organizations and scientific and technical workers to establish cooperative relations of various forms with foreign science and technology
circles.

Chapter II Science and Technology in Economic Construction and Social Development

Article 10

The State shall encourage research and development of new technologies, new products, new materials and new techniques, and promote
activities of advancing rationalization proposals, and enhancing technological innovation and technical collaboration so as to steadily
improve product quality, labour productivity and economic returns and develop thereby social productive forces.

Article 11

The State shall select projects of vital significance to economic construction and sponsor related scientific research and technological
development so as to accelerate the popularization and application of scientific and technological achievements in the production.

Article 12

The State shall establish and develop technology market to promote the commercialization of scientific and technological achievements.
Technology trading activities shall be conducted in accordance with the principles of free will, equality,mutual benefit, transaction
non-gratis, honesty and credibility.

Article 13

The State shall rely on scientific and technological progress to advance economic construction and social development, control population
growth, enhance population quality,rationally develop and utilize resources, defense against natural calamities, and protect living
conditions and ecological environment.

Article 14

The State shall rely on scientific and technological progress to vitalize rural economy, promote the popularization and application
of agricultural scientific and technological achievements, and develop a modern agriculture of high yield, high quality, and high
efficiency.

Article 15

Local people’s governments at or above the county level shall adopt measures to ensure that agricultural science and technology research
and development organizations as well as demonstration and dissemination bodies shall have the right of independent management and
use of their experimental bases and means of production in research, development, testing and popularization of new varieties and
new technologies in agriculture.

The application and popularization of agricultural scientific and technological achievements shall be a service gratis or non-gratis
in compliance with relevant laws and regulations.

Article 16

Local people’s governments at various levels shall encourage and support the development of mass science and technology organizations
in rural areas, and render socialized scientific and technical services to plantation, forestry, animal husbandry and fishery before,
during and after their production in a comprehensive and systematic way.

Article 17

The State shall rely on scientific and technological progress to develop industry, communications and transportation, post and telecommunications,
geological prospecting, construction and installation, commerce and other trades, so as to enhance their economic results and social
benefit.

Article 18

The State shall encourage enterprises to establish and improve their technology development organizations, and also encourage them
to join forces or cooperate with research and development institutes, and institutions of higher learning, with a view to increasing
their capabilities in research and development, pilot trial, and industrial test.

Article 19

Enterprises shall, in response to the demands of international and domestic markets, carry out technological transformation and equipment
renewal, upgrade their scientific management level and assimilate and develop new technology so as to strengthen their market competitiveness.

Enterprises shall seek consultation and assessment services and implement industrial and technological policies of the State when
engaged in technological transformation and importation of advanced foreign technology and equipment.

Enterprises which apply new techniques to develop and produce new products may enjoy preferential treatment in accordance with the
provisions of the State.

Article 20

The State shall rely on scientific and technological progress to develop the national defense science and technology, speed up the
modernization of national defense and strengthen the national defense capabilities.

Article 21

The State shall encourage the application of advanced science and technology to promote the development of education, culture, public
health, sports and other undertakings.

Chapter III High-tech Research and High-tech Industries

Article 22

The State shall promote research on high technology and bring into play the leading role of high technology in scientific and technological
progress; the State shall foster and promote the formation and development of high-tech industries, and apply high technology to
transform traditional industries, and bring into play the role of the high-tech industries in economic construction.

Article 23

The administrative department in charge of science and technology under the State Council and other relevant administrative departments
shall organize in the whole nation scientific and technological forces to carry out research on high technology and popularize the
achievements thereof.

Article 24

High and new technology industrial development zones shall be established upon approval by the State Council in selected areas with
appropriate conditions.

Article 25

Preferential policies stipulated by the State shall be applied to the enterprises and the research and development institutions engaged
in the development and production of high-tech products within and without the high and new technology industrial zones, and the
specific measures shall be formulated by the State Council.

Article 26

The State shall encourage and guide the enterprises engaged in development, production and transaction of high-tech products to establish
management systems in conformity with international norms, produce high-tech products up to international standards, and participate
in global market competition so as to advance the internationalization of high-tech industries.

Chapter IV Basic Research and Applied Basic Research

Article 27

The State shall ensure the continuous and steady development of basic research and applied basic research, and consolidate the foundation
for scientific and technological progress.

Funds for basic research and applied basic research shall account for an appropriate proportion in the total funds for research and
development.

Article 28

The administrative department in charge of science and technology under the State Council shall organize in a planned manner the implementation
of major basic scientific research programmes in the frontier disciplines and in economic and social development.

Research and development entities, institutions of higher learning, other enterprises and institutions as well as citizens may select
subjects on their own for basic research and applied basic research.

Article 29

The State shall establish a Natural Science Fund to aid basic research and applied basic research in accordance with the principle
of supporting only those with eligibility on the basis of appraisal and deliberation by experts.

The State shall support scientific research activities conducted by outstanding youths, and establish a Science Fund for Youths within
the Natural Science Fund.

Article 30

The State shall support the build-up of key laboratories, and set up bases for basic research and applied basic research.

The State-level key laboratories shall be open to both domestic and foreign researchers.

Chapter V Research and Development Institutions

Article 31

The State shall, in accordance with the demands of economic construction and scientific and technological progress,provide an overall
planning and guidance for the layout of scientific and technological research and development institutions,and establish a modernized
scientific and technological research and development system.

Article 32

The State shall give support, in such aspects as financial expenses and experimental means, to research and development institutions
and institutions of higher learning engaged in basic research and applied basic research, high-tech research, research for major
construction projects, research concerning projects for tackling major scientific and technological problems, and research on science
and technology for key social and public welfare undertakings.

Article 33

The State shall encourage and guide research and development institutions engaged in technology development to develop their technological
achievements independently or in collaboration with other enterprises and institutions, and carry out an integrated management of
technology, industry and trade, or of technology, agriculture and trade.

The State shall encourage and guide research and development institutions engaged in scientific and technical consultation,scientific
and technical information services and social and public welfare undertakings to gradually carry out enterprise management or to
provide services non-gratis.

Article 34

Research and development institutions shall practise a system whereby the president or director takes responsibility.

Research and development institutions shall, in accordance with the relevant regulations of the State, enjoy decision-making power
in their conduct of research and development, production management, use of funds, institutional set-up and personnel recruitment.

Article 35

The State shall encourage various social forces to establish research and development institutions on their own and shall protect
their legitimate rights and interests against any encroachment.

Article 36

Research and development institutions may, in conformity with the law, invest and establish branches abroad.

Foreign organizations or individuals may, in accordance with the law, establish research and development institutions within the territory
of China, and may also set up, together with Chinese research and development institutions or other organizations,Chinese-foreign
equity or contractual research and development institutions.

Chapter VI Scientific and Technical Workers

Article 37

Scientific and technical workers constitute an important force in the socialist modernization drive. The State shall take various
measures to raise the social status of scientific and technical workers, cultivate and bring up through various channels scientific
and technical professionals of various specialities and create favourable environments and conditions to bring the role of scientific
and technical workers into full play.

Article 38

People’s governments at all levels, enterprises and institutions shall take measures to gradually improve the treatment given to scientific
and technical workers, and better their working and living conditions; and special preferential treatment shall be granted to scientific
and technical workers with outstanding contributions.

Article 39

People’s governments at all levels, enterprises and institutions shall create environments and conditions for the rational mobility
of scientific and technical workers so as to give full play of their specialities.

Article 40

Subsidies shall be granted, according to the regulations of the State, to scientific and technical workers engaged in basic research
and applied basic research, high-tech research, research for major construction projects, research for tackling key scientific and
technological problems, and research on science and technology for major social and public welfare, and those who work in poverty-stricken
rural areas and minority nationality areas or work under adverse and dangerous conditions.

Article 41

The State shall practise the system of professional and technical post_titles. Scientific and technical workers may obtain corresponding
post_titles on the strength of their academic levels,professional abilities and accomplishments in their work.

Article 42

Scientific and technical workers shall have the right to establish or participate in, according to law, scientific and technical social
bodies.

Scientific and technical social bodies shall play an active role in advancing the construction of scientific disciplines,popularizing
scientific and technical knowledge, training professional personnel, conducting consultation services, promoting academic exchanges,
and safeguarding the legitimate rights and interests of scientific and technical workers.

Article 43

The State shall encourage overseas scientific and technical workers to return to the motherland and take part in the socialist modernization
drive, or serve the national construction in other ways.

Article 44

Scientific and technical workers shall abide by the professional ethics, fulfill their duties and earnestly upgrade their own scientific
and technical levels.

Chapter VII Measures to Guarantee Science and Technology Progress

Article 45

The State shall steadily increase the overall level of financial input to science and technology. The national research and development
expenditure shall account for an appropriate proportion in the gross national product, and shall be gradually increased to meet the
needs of scientific and technological advances and economic and social development. The specific ratio of the national research and
development expenditure in the gross national product shall be set by the State Council.

The increase scale of the funding for science and technology allocated from the State financial budget shall exceed that of the regular
financial revenue of the State.

No unit or individual shall misappropriate, embezzle part of,or detain the funding for science and technology allocated from the State
financial budget.

Article 46

The State shall encourage enterprises to increase their investment in research and development and in technological innovation. The
technological development expenditure of enterprises shall be entered into the account as cost in its actual amount.

Article 47

The financial institutions of the State shall support the commercialization of scientific and technological achievements by means
of credits and loans.

Article 48

Research and development institutions engaged in technological development may, in accordance with relevant regulations of the State,
raise funds for research and development from society by various ways.

Article 49

The State shall encourage domestic and foreign organizations or individuals to set up science funds of various kinds to finance scientific
research and technological development.

Article 50

The competent administrative departments under the State Council and local people’s governments at all levels shall take measures
to promote scientific and technical information exchange and to establish modern scientific and technical information networks.

Article 51

The State shall institute a science and technology security system to guard scientific and technological secrets concerning national
security and interests.

The State shall strictly control the exit from the territory of precious biological species resources.

Chapter VIII Science and Technology Awards

Article 52

The State shall set up a science and technology awarding system to reward citizens and organizations that have made important contributions
in their activities of science and technology progress.

Article 53

The State shall confer, according to law national honorary post_titles on citizens who have made outstanding contributions to the development
of science and technology.

Article 54

The State Council shall set up Natural Science Prizes, Technological Invention Prizes, Science and Technology Progress Prizes, International
Science and Technology Cooperation Prizes, and, if necessary, other types of science and technology prizes.

The Natural Science Prizes shall be granted to citizens who have expounded certain phenomena, traits and laws of nature and made important
scientific discoveries in basic research and applied basic research.

The Technological Invention Prizes shall be granted to citizens who have made important technological inventions in products, processes,
materials or systems by applying scientific and technological knowledge.

The Scientific and Technological Progress Prizes shall be granted to the citizens or organizations that have made outstanding contributions
in the application and popularization of advanced scientific and technological achievements, the accomplishment of major scientific
and technological projects, plans and programmes,and the improvement of science and technology management.

The International Science and Technology Cooperation Prizes shall be granted to foreign citizens or organizations that have made significant
contributions to the cause of China’s science and technology.

Article 55

Enterprises and institutions shall set aside, in accordance with relevant regulations of the State, a certain percentage of the newly
added profit generated from the application of scientific and technological achievements to reward individuals who have accomplished
the technological achievements.

Article 56

Organizations or individuals, at home or abroad,may establish science and technology award funds to reward citizens or organizations
that have made remarkable contributions in their activities of scientific and technological progress.

Chapter IX Legal Liability

Article 57

Anyone who, in violation of the State public finance administration and financial management system,misappropriates, embezzles part
of, or detains the funds for science and technology allocated from the State financial budget,shall be ordered by the competent authorities
at higher levels to return within a specified period of time the funds misappropriated, embezzled, or detained; and if the circumstances
are serious, the person held directly responsible shall be given administrative sanctions by the competent authorities at higher
levels or by the unit to which he belongs.

Article 58

In case of abusing power to suppress scientific and technological inventions or rationalization proposals, the person held directly
responsible shall, if the circumstances are serious, be given administrative sanctions.

Article 59

Anyone who obtains preferential treatment or awards by resorting to fraud in the development of new technologies and new products
and in the declaration of scientific and technological achievements shall be deprived of the preferential treatment or awards and
be concurrently given administrative penalties or sanctions.

Persons who, taking part in appraising scientific and technological achievements, deliberately made false appraisal shall be given
administrative sanctions by the competent authorities concerned.

Article 60

Anyone who encroaches upon another person’s copyright, patent right, right of discovery, right of invention or right of scientific
and technological achievements by means of plagiarism, alteration or imitation, or who illegally usurps technical secrets, shall
be dealt with in accordance with relevant provisions of the law.

Chapter X Supplementary Provisions

Article 61

The administrative department in charge of science and technology under the State Council and other relevant administrative departments
shall formulate implementing measures in accordance with this Law, and shall submit them to the State Council for approval prior
to implementation.

Article 62

This Law shall enter into force as of October 1,1993.