A new spending plan in China's 13th Five-Year Plan (2016-2020) significantly increases government spending on science research and development.

By 2020, China aims to increase expenditure on scientific research and experiments to 2.5 percent of its GDP and expects its comprehensive innovation capabilities to be ranked among the world's top 15. This compares to the 2.1 percent of total national expenditures amounting to over S211 billion in 2015. The plan also aims to make China an innovation powerhouse by 2020.

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On the other hand, the Science, Technology and Industry Outlook 2014 projects China will outspend the United States in science research and development by 2020. The outlook was published by the Organization for Economic Co-operation and Development (OECD), an intergovernmental economic organization with 35 member countries to stimulate economic progress and world trade.

It said China will place great emphasis on telecommunications; quantum computing; nuclear power; deep-sea exploration; computer circuitry; brain science and lunar exploration. Beijing also plans to increase efficiency, foster creativity and direct resources to strategic areas.

The State Council, China's equivalent of a governmental Cabinet, revealed a timeline intended to transform China into an "innovation powerhouse" by 2020.

To attain the goal of becoming an innovation powerhouse, China will strengthen innovative ability, improve research on technology, build major sci-tech facilities and establish national science and technological research centers.

It will also highlight the importance of innovation, improve the business incubator system such as innovation services and maker spaces and establish a standard and open technology traction market.

China will also expand cooperation in science and technological development with other countries, especially those along the New Silk Road. It will encourage joint research projects between Chinese and foreign institutes and enterprises to attract more high-level foreign experts to work in China.

Tags13th Five-year plan, Research and Development, Science, Technology and Industry Outlook 2014, OECD