In an arms race for tech and talent, China blitzes as the US retreats

As federal funding cuts put the US at risk of losing its long-held scientific leadership, China launched an all-out innovation offensive – turbocharging its R&D budget to unprecedented levels, attracting top-tier global talent, and executing a systematic strategy to dominate the technologies of the future.

These disruptive technologies include AI, humanoid robotics, and 6G-enabled communication networks that, if interconnected, could redraw the global balance of power.

Budget boost vs spending slash

Beijing has accelerated the technological arms race with a second consecutive 10 per cent increase in science spending, allocating 398 billion yuan (US$54 billion) in central government spending for 2025, according to the Ministry of Finance’s draft budget report released during the annual legislative sessions in Beijing on Wednesday.

This target allocates an unprecedented amount of funding for research and development and makes science the top growth sector in government spending for two consecutive years, surpassing diplomacy, public security, education and defence.

“These funds will be further weighted toward basic research, applied basic research, and China’s strategic scientific and technological endeavours,” the budget document said. “Spending on basic research will account for a greater share of total science and technology expenditures.”