« Inspired by the technical progress of the super powers, on March 3, 1986, four scientists from the Chinese Academy of Sciences (CAS) wrote a letter to suggest the program to Deng Xiaoping, who approved it within 2 days. »
https://huabinoliver.substack.com/p/how-beijing-used-state-planning-to
How Beijing used state planning to build a scientific powerhouse
Introducing four decades-long Chinese national programs to promote basic research and groom talents
Hua Bin
Substack, Oct 9, 2025
China is producing more STEM graduates, publishing more high impact research papers, and filing for more patents than any other country today.
People are amazed with the seemingly sudden outburst of Chinese scientific and technological prowess. But few understand how this has happened.
I’ll dive into some arcane programs launched since Deng’s reform to explore the root of such progress. Unlike the Made in China 2025 plan or the Belt and Road Initiative, these are barely known outside of the country, even unfamiliar to many Chinese. However, their impact is profound and directly power the more visible high-profile programs.
Program 863
Program 863 (863计划 in Chinese), also known as State High-Tech Development Plan, was a program launched in March 1986 (86/3 in Chinese date format hence the name) to stimulate development of advantaged technologies in a wide range of fields.
The goal was to achieve technological independence amid superpower competition.
In 1983, US president Ronald Reagan proposed the Strategic Defense Initiative (SDI) and technological competition between the US and the USSR drastically intensified.
Inspired by the technical progress of the super powers, on March 3, 1986, four scientists from the Chinese Academy of Sciences (CAS) wrote a letter to suggest the program to Deng Xiaoping, who approved it within 2 days.
Those four scientists were Wang Daheng (optical physicist and founder of China’s optical engineering field), Wang Ganchang (nuclear physicist and leader of the nuclear weapons program), Yang Jiachi (aerospace engineer and father of China’s space programs), and Chen Fangyun (electrical engineer, pioneer in radio electronics, and leader of the Beidou satellite system).
The program was led by Zhao Ziyang, the Premier of the country at the time, and received a governmental fund of RMB 10 billion, which accounted for 5% total government spending in 1986.
In 2001, under the 10th Five Year Plan (2001–2005), the program was reevaluated and widened its focus to strengthen the country’s competitiveness in the global economy.
The program specifically focused on nine key technological fields:
- Space
- Information Technology
- Laser technology
- Automation
- Telecommunications
- Biotech
- Energy
- New materials
- Marine tech
Among the products to have directly resulted from Program 863 are the Loongson computer processor family, the Tianhe supercomputers, and the Shenzhou spacecraft.
Many other foundational technological indigenization projects broke earth as part of Program 863,
Program 973
973 Program (973计划), also known as National Basic Research Program, is a basic research program initiated by the State Science and Education Steering Group to achieve technological and strategic edge in various scientific fields and especially the development of the rare earth minerals industry.
The program was launched in March 1997 as a flagship initiative to advance fundamental scientific research.
The goal is to align innovations and technologies with national priorities in economic development, resource security, and technological independence to support the national strategy of “revitalizing the country through science and education” (科教兴国).
The program was managed by the Chinese Ministry of Science and Technology. Natural Science Foundation of China is involved in coordinating the research with the program whose key objectives are -
- Foster basic research: emphasize foundational studies that drive breakthroughs in applied sciences, rather than immediate commercial applications
- Build capacity: train top-tier scientists, establish high-level research bases, and enhance China’s global innovation edge
- Support national priorities: target areas critical to China’s development, such as sustainable resources and public health
Over the years the program has dedicated funding to areas such as agriculture, health, information, energy, environment, resources, population and materials.
The program has funded diverse fields, with central government support for multi-year projects. Major themes include:
- Agriculture – crop resilience, food security
- Health & Population – disease mechanisms, public health modeling
- Energy – renewable sources, efficient utilization
- Information Technology – AI foundations, data systems
- Environment & Resources – pollution control, rare earth minerals extraction and processing
- Materials Science – advanced composites, nanomaterials
- Oceans & Climate - Indo-Pacific oceanic channels, ecosystem responses to climate change (e.g., nutrient fluxes in the East China Sea)
By 2014, it had supported projects in synthetic biology, microbial engineering, and more, leading to over 9 dedicated initiatives in emerging fields like “microbial manufactures.”
Institutions like Tsinghua University have received funding for multiple projects.
Program 973 has been pivotal in elevating China’s R&D landscape, contributing to breakthroughs that underpin sectors like high-tech manufacturing and environmental sustainability.
It’s often credited with helping China close gaps in global science competitiveness.
During the 10th Five-Year Plan, the program adopted a “people-oriented” approach to boost innovation. Funding periods shifted from up to 5 years to a “2+3” model (initial 2 years, followed by assessment and up to 3 more years).
Program 863 and Program 973 were absorbed into the National Key R&D Program in 2016.
Project 211
Project 211 was initiated in 1995 by the Ministry of Education, to strengthen around 100 key universities and colleges for the 21st century and raise them to academic standards at top global universities. The total university count in China is roughly 3,200.
The project aimed to cultivate high-level talent, enhance national research capacity, and improve China’s overall competitiveness by providing funding and top-tier equipment to designated universities.
The project eventually included 115 universities and included high ranking institutions such as Tsinghua University, Wuhan University, and Fudan University.
The Chinese government invested significant funding and provided top-notch teaching and research equipment to these institutions.
Universities under Project 211 were responsible for a large percentage of China’s doctoral and graduate training, state-level key subjects, and scientific research activities.
Among the 12 million high school graduates who took the national college entrance exam (Gaokao), those universities are regarded as the holy grail for economic and social mobility.
In essence, Project 211 was a strategic investment by the Chinese government to build world-class academic institutions and foster national talent for the new century.
Project 985
Project 985 was a higher education initiative launched by the Chinese government in May 1998 to develop an even more select group of top-tier universities than Project 211 into “world-class” institutions.
The project was announced on May 4, 1998, during Peking University’s centennial celebration, with President Jiang Zemin’s personal endorsement.
This is the most prestigious group of schools in the country. Initially only 9 universities were included and now expanded to 39 top universities. All universities in Project 985 were also included in the earlier Project 211.
The program objective is defined as “cultivating leaders and researchers to compete internationally and address national priorities like tech independence and sustainability”.
The central and local governments allocated massive funding to the universities included in Project 985. This money was used to build new research facilities, improve existing infrastructure, attract top faculty, and increase international exchange and cooperation.
The project dramatically increased the international competitiveness and research output of the participating universities. It is widely credited with significantly boosting the quality of higher education and research in China.
The project went through 3 phases –
- Phase 1 (1999–2008): focus on infrastructure, faculty recruitment, and research capacity with substantial initial funding. For example, Peking and Tsinghua each received RMB 1.8 billion in the first year of the project
- Phase 2 (2009–2016): Emphasize global rankings, interdisciplinary research, and international collaboration
- Phase 3: integration. By 2017, Project 985 and Project 211 were merged into the “Double First-Class University Plan”, which broadened the focus to include more institutions and disciplines while maintaining the elite status of 985 universities.
The result of Project 985 was the emergence of elite universities such as Peking, Tsinghua, Zhejiang, Fudan, Shanghai Jiaotong, and Harbin Institute of Technology that are now world leaders in engineering, computer science, robotics, aerospace, and medicine.
These universities lead in patents, publications, and breakthroughs in AI, quantum computing, and green energy. They produce a significant share of China’s PhDs, researchers, and industry leaders.
Project 985 was a cornerstone of China’s ambition to rival global academic powerhouses like the Ivy League or Oxbridge.
Every one of the “Project 985 universities” is ranked among the top 100 global research institutions in the Nature Index ranking I wrote about in the last article.
[Nature Index’s latest global science ranking
Hua Bin - Oct 7
Earlier this year, I wrote about the prestigious Nature magazine’s 2024 Nature Index ranking of global research institutions based on the quantity and impact of their research output in high end science journals.
https://huabinoliver.substack.com/p/whose-universities-are-better-china ]
Even today, when Project 985 is officially completed, the prestige of a “985 degree” is still highly regarded in Chinese society by employers and even prospective spouses.
Together with Program 863 and Program 973, which funded specific basic research projects across institutions, Project 211 and Project 985 focused on institutional development—buildings, labs, faculty, and research publication.
The 985 and 211 universities often lead 863 and 973-funded projects due to their advanced research infrastructure. For example, Tsinghua has led numerous 863 and 973 projects in materials science and AI, leveraging resources as a participant of Project 985.
Interestingly, over the past 4 decades, Tsinghua’s engineering schools also graduated a large portion of the top leadership in the Chinese government, including President Xi, his predecessor President Hu Jingtao and former Premier Zhu Rongji.
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