BEIJING, — April 27, 2026 : China has surpassed the United States in total research and development (R&D) spending for the first time, marking a structural shift in global science and technology investment patterns, according to newly released data from the Organisation for Economic Co-operation and Development.
Figures from the OECD’s Main Science and Technology Indicators, published in March 2026, show that China’s gross domestic expenditure on research and development (GERD) reached approximately $1.03 trillion in 2024, slightly exceeding U.S. spending of $1.01 trillion. The data, adjusted using purchasing power parity (PPP) to account for cost differences, confirm that both countries crossed the $1 trillion threshold in the same year.
The United States had maintained its position as the world’s largest R&D spender for decades, dating back to the post-World War II period. The 2024 data mark the first recorded instance of China taking the lead in overall spending.
Growth Trends and Investment Structure
China’s rise reflects sustained long-term growth in R&D investment. Since 2004, the country’s R&D expenditure has increased at an average annual rate exceeding 14 percent, more than double the pace observed in the United States over the same period. By 2024, China’s R&D intensity—measured as a share of gross domestic product (GDP)—reached 2.7 percent, approaching levels typical of advanced OECD economies.
A significant portion of China’s R&D funding is driven by the private sector. Business enterprises accounted for approximately 80 percent of total R&D expenditure in recent years, up from around 75 percent in 2015, indicating a shift toward industry-led innovation.
In comparison, the United States continues to rely heavily on private sector contributions, with businesses performing roughly 78 percent of total R&D. However, federal R&D spending as a share of GDP has declined over time, falling from a peak of 1.86 percent in 1964 to about 0.66 percent in recent years.
Scientific Output and Research Performance
The increase in China’s R&D investment corresponds with measurable gains in research output. In 2024, China overtook the United States in the total number of scientific publications. It has also led globally in the share of the top 1 percent most-cited scientific papers since 2019.
Chinese research institutions hold a leading position in several metrics tracked by international indexes, including publication share in high-impact journals and performance in fields such as artificial intelligence and strategic technologies. China also records a high volume of patents in emerging sectors, reflecting the translation of research into applied innovation.
Key Technology Areas
China’s R&D spending is concentrated in a range of strategic and high-technology sectors. These include artificial intelligence, semiconductor technologies, advanced manufacturing systems, and green energy development.
In artificial intelligence, China has expanded both its research workforce and deployment of advanced computational models. In quantum information science, the country has developed prototype communication networks linking major cities, including satellite-based systems. Energy research includes investment in fusion projects such as the Experimental Advanced Superconducting Tokamak, alongside advances in energy storage technologies. Additional investments target high-performance computing infrastructure and telecommunications.
Historical Context and Innovation Systems
Since the end of World War II, the United States has led global scientific innovation, supported by a network of universities, federal laboratories, and private sector research institutions. U.S. R&D investment contributed to the development of foundational technologies, including the internet, the transistor, the Global Positioning System (GPS), and mRNA vaccines. These advances have been associated with a substantial share of long-term productivity growth.
China’s position has changed significantly over the past four decades. In the 1980s, its R&D expenditure ranked among the lowest globally. Continued policy emphasis on science and technology, combined with industrial expansion, has driven its rapid increase in research funding.
Policy Direction and Future Targets
Chinese authorities have indicated continued expansion in R&D investment. Data from national agencies show that total domestic R&D spending reached 3.92 trillion yuan in 2025, equivalent to approximately $569 billion at then-current exchange rates, with R&D intensity rising to 2.8 percent of GDP. Basic research accounted for 7.08 percent of total spending, marking an increase in focus on foundational science.
Under the country’s 15th Five-Year Plan (2026–2030), China has set a target of at least 7 percent average annual growth in nationwide R&D spending. The plan also includes the establishment of three international centers for science and technology innovation.
Global Comparison
According to OECD assessments, China’s 2024 R&D expenditure places it ahead of all individual countries. The European Union, considered as a regional bloc, trails both China and the United States in total spending. Japan, Germany, and South Korea remain among the next largest R&D-performing economies.
While the United States retains leadership in specific areas, including university-based basic research and certain high-impact scientific domains, the OECD data indicate a shift in overall spending leadership.
Further updates to global R&D statistics are expected as data for 2025 and subsequent years become available.
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