In an interview with China Daily, Xu Guanhua said this indicates China's accession to the World Trade Organization (WTO) is prompting the government to create a flexible and favorable climate for scientific and industrial development.

Xu said his ministry and other relevant departments will encourage the growth of intermediate agencies. Such agencies focus on the popularizing of technology, technology trade, business incubation, providing information on new technology and technological assessment and consulting services.

"The government will implement policies and rules to enhance the efficiency and protect the rights of these agencies, regulate their professional performance and upgrade their service standards," Xu added.

The Ministry of Science and Technology will cooperate with financial, tax, industrial and commercial authorities to work out preferential policies for special intermediate technological agencies, especially those focusing on spreading agricultural techniques and commercializing high-tech findings.

Internet-based information networks across the country will be set up to link intermediate service agencies together to fully tap scientific resources and speed up the dissemination of technological information, said Xu.

He said that another important step is the rational introduction of foreign intermediate technological agencies.

"China's entry to the WTO will bring more chances for overseas scientific and technological firms to set up solely owned or jointly run labs, technological institution, intermediate agencies and other relevant organizations in China," Xu pointed out.

China already has more than 100 Sino-foreign joint research institutions. These have played an active role in promoting academic exchanges between China and other countries and in helping train Chinese staff in advanced specialities.

"Higher-level experts are crucial for reinforcing the country's long-term scientific and economic development," Xu said.

"The State will take more measures to halt the nation's brain drain, while attracting more overseas-based Chinese graduates to return and join scientific projects," Xu added.

Scientists will be encouraged to undertake major scientific projects through open and fair competitions. Those who successfully bid for a scientific project will be given adequate funding for research and development and also bonus payments for researchers.

"China's scientific institutions will be urged to speed up the cultivation of younger scientists, which will be a criterion in the appraisal of their achievements," the minister said.

To reward researchers and business managers for their technological innovation and commercialization of research findings, the government will introduce a rewards system among high-tech firms. "Outstanding scientific workers will be rewarded with different forms of options, share-holding rights or other property rights," Xu said.

He added the Ministry of Science and Technology will also provide special funds to help Chinese scientists take part in more international academic exchanges and co-operative ventures.

Another major task is to nurture small and medium-sized technological firms to fuel China's scientific and industrial development following its WTO accession, said the minister. The experiences of some foreign countries have shown that, in the fierce global competition, small and medium-sized firms can create advanced products with a strong competitive edge through technological upgrading.

China has 86,000 small and medium-sized technological firms, whose interests range from information technology to biotechnology, and from new materials to environmental protection. Statistics show that they have greatly pushed forward regional economic and technological development over the past decade.

The central government will allocate 5 billion yuan (US$602 million) to implement major scientific programs during the period of the 10th Five-Year Plan (2001-05), Xu added.

(China Daily January 4, 2002)