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      China to add R&D spending in GDP

      2014-07-02 16:08 chinadaily.com.cn Web Editor: Qin Dexing
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      National Bureau of Statistics plans to include research and development spending as it revises the calculating methodology for gross domestic product, 21st Century Business Herald reported on Wednesday.

      The statistics bureau has completed a draft plan and will submit it to the State Council for approval before the end of the year.

      The change will lead to a rise of the aggregate economy and economic growth rate, the newspaper said.

      Some eastern cities, such as Beijing, have heavier research input. The revision will increase the gap of total GDP between eastern and western regions.

      China spent 1.19 trillion yuan ($191 billion) on research and development in 2013, an increase of 15.6 percent over the previous year. Experts say about three quarters of the research input can be transferred to GDP, and it will contribute about 1 trillion yuan ($160 billion) if counted, or a lift of 1.56 percent.

      Prior to the change, the Statistics Bureau adjusted the GDP accounting ways for three times. The United States had a similar plan implemented last year when it added research input to the calculation of its economic growth.

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