But analysts say the forecast is relatively reserved compared to the increased R&D spending over the previous five years.

Official statistics for 1998 show R&D spending only totaled 50.9 billion yuan (US$6.13 billion). Government investment jumped to 104.3 billion yuan (US$12.57 billion) last year.

"The planned R&D spending growth rate for the coming five years is obviously slower than the 1998-2002 period," said a source from the Ministry of Science and Technology.

China's R&D investment has already accounted for 1.1 percent of 2002's gross domestic product (GDP), but the proportion was only 0.64 percent in 1998.

"The R&D investment has really increased a lot, but more room still remains compared to developed countries," Xu said.

On average, developed countries spend 4 percent of their GDPs on R&D, Xu said at yesterday's briefing organized by the State Council Information Office.

Xi Yanchun from the office said cabinet officials will be invited to attend other briefings about the past five-year period, before the 10th National People's Congress, which starts on March 5.

Xu said international co-operation in science and technology is playing an increasingly important role in the country's economic and social development.

"The soul of science and technology heavily relies on opening up and only co-operation can produce outstanding achievements," Xu said.

Over the past five years, the Chinese Government has established co-operative relationships with 152 countries and regions, signed inter-governmental agreements with 96 countries and joined more than 1,000 international scientific organizations.

In addition, 440,000 foreign experts have worked in China.

"Meanwhile, we encourage our scientists to absorb outstanding achievements worldwide," Xu said.

Xu said Chinese scientists and companies were encouraged to work with international companies and explore global markets.

So far, China has endeavored to set up high-tech parks with Russia, Singapore and the United States.

(China Daily February 21, 2003)