Research capability gathers momentum
China's progress in stem cells research is largely based on the government's drive to increase overall spending on scientific research.
Most of the mainland's stem cell researchers receive funding from the government's National High Technology research and development programme - also known as the 863 programme - which was launched in 1986 and forms part of China's five-year economic plans.
By 2001, more than 20,000 researchers and administrative staff from more than 3,000 research institutions, universities and enterprises across the country were involved in the 863 programme.
Funding for the programme doubles each year for the first two years, with 50 per cent increases for subsequent years in the five-year plan period.
The programme has contributed to China becoming the world's third-largest spender on research and development after the US and Japan.
In 2001, its research and development budget was US$60 billion, with three-fifths coming from foreign and domestic firms and the rest from the government.
Multinational firms have been keen to set up research centres in China due to its large and more affordable pool of scientists and engineers.
The mainland is eager to net a large share of the booming stem cell business, the global value of which is expected to soar from $238 billion this year soar to $596 billion by 2010, according to a team of British Trade and Industry Department stem cell scientists.
'The [central] government is financing the building and modernisation of new stem cell laboratories, creating new university appointments with competitive salaries for 'returnees', and providing money for research and venture-like capital funds to establish biotech companies owned by their researchers and universities,' the report said.
But China is not alone in investing in stem cell research. Singapore is spending $2.4 billion on 'Biopolis', a cutting-edge science park focused on stem cell technology. It plans to invest $59.6 billion in stem cell research by the end of the year.
The Australian government will spend $447 million from 2006-2011. Other countries have also taken steps to allow the research to develop.
The financial firepower of US investment is relatively small, due to comparatively restrictive regulations.
In 2003, only 10 private American firms were actively involved in embryonic stem cell research, spending $536 million, the report said.
In Israel, a group of medical companies and academic research facilities, is embarking on a $164 million programme to develop stem cell-based therapies.
