Premier Li Keqiang Meets the Press: Full Transcript of Questions and Answers

CCTV: China said it will make the country strong in science and technology. Yet our capability in some key areas still falls short, and certain critical technologies are still dependent on foreign supply. Some research seems to be oriented at quick success, and some high-tech projects in some regions with heavy investment have failed to deliver. How do you see such a situation? And what measures will the government take to spur innovation in science and technology?

Premier Li: Our country has achieved major breakthroughs in scientific and technological innovations over the years, and application-oriented innovation has been developing fast. But it is also true that our basic research is inadequate. To make our country strong in science and technology and enhance the ability to make innovations, we must solidify the foundation, which is basic research and application-oriented basic research, as the height of a building is determined by the depth of its foundation. We must reject any temptation for quick success, and take solid steps one at a time.

Our R&D spending as a percentage of GDP is still modest, especially in terms of basic research. It only accounts for six percent of total R&D spending whereas the number in developed countries ranges between 15 to 25 percent. We will continue to increase input in basic research. We will also carry out institutional reforms regarding science and technology. One very important aspect of granting scientists and researchers greater autonomy is for them to have a bigger say in deciding how research funds will be used. These people should not have to spend their valuable time and energy on doing paperwork or competing for awards. They should be able to stay fully concentrated on doing research, and they will be able to accomplish something big when they are well-grounded in their areas of specialty.

Here I would also like to say a few words to young students. No matter what job you want to do, or what dream you have for your life in the future, be sure to lay a solid foundation in essential knowledge and skills. Laying such a foundation and boosting your capacity for innovation are mutually reinforcing. The nutrients for a giant tree come from its root. Laying a solid foundation in knowledge and skills will open many doors and help you lead a fulfilling life.

We must rely on market forces in driving innovations. Companies are the most important force. During the 14th Five-Year Plan period, the government will continue to scale up inputs, and we also need to rely more on private actors in boosting their R&D spending. Hence our R&D spending increase needs to come from all stakeholders.

This would require institutional arrangement in policy support. This year we will introduce the tax incentive of raising the extra tax deduction on the R&D expenses of manufacturing firms to 100 percent. This is a market-oriented and inclusive tax break measure aiming to keep companies driven to scale up inputs in research and development.

We have a wealth of talent in China who are critical for R&D. In addition to enabling leading professionals to succeed, we should also recognize that there could be extraordinary wisdom among ordinary people. That is why in recent years we have been encouraging business startups and innovations among the general public. And this initiative has created enormous space for application-oriented innovation and overall innovation.

China's effort to strengthen itself in science and technology needs the efforts of Chinese scientists. Yet it is also compatible with promoting international cooperation and exchanges among global scientists. Scientific explorations, discoveries and inventions call for cooperation and joint efforts. Isolation will lead nowhere and severance of industrial or supply chains will do no one good. Based on protecting intellectual property, China is ready to enhance cooperation with all other countries in science and technology to jointly promote progress of human civilization.

CNN: Mr. Premier, US-China relations hit a low point in the past several years since the establishment of diplomatic ties. In their recent statements, Chinese officials cited the highly erroneous anti-China policies of the Trump administration as the reason for that. Their message to the new US administration under President Biden is to right the wrongs. But many people in Washington, D.C. believe that two important points are overlooked in China's position and judgement. That is, both sides are responsible for the worsening of the bilateral relationship, not as what China said, the responsibility lies solely with the US side. The other is, there is a high bipartisan consensus in Washington, D.C. in the attitude and major policy toward China, including on the origins of the coronavirus, Hong Kong and Xinjiang. How would you respond to this? Moreover, as the two countries are about to hold the first high-level consultations since the beginning of the Biden administration in Alaska next week, is China also prepared to adjust or alter its position and policy on related issues to reset and improve its relations with the United States?

Premier Li: In the past several years, China-US relations encountered great difficulties, which has adversely affected both countries and the world. As the world's largest developing and developed countries, China and the United States both stand to gain from cooperation and lose from confrontation. In the past forty-plus years of diplomatic ties, China-US relations have gone through some twists and turns, but kept moving forward by overcoming obstacles. This is in keeping with the trend of world development and the fundamental interests of both countries. We hope that the two countries will act in the spirit of the phone conversation between President Xi Jinping and President Joe Biden, respect each other's core interests and major concerns, refrain from interfering in each other's internal affairs and work for sustained and healthy development of China-US relations in line with the principle of no conflict, no confrontation, mutual respect and win-win cooperation. That is in the interest of people of both countries. It is also what the international community hopes to see.

China and the United States are different in historical background, cultural heritage, stage of development and social system. Some differences and disagreements are hardly avoidable, and some could be quite acute. But what matters most is how these differences and disagreements are handled. The Chinese and American peoples have the wisdom and capability. The two sides need to have dialogue and exchanges based on mutual respect and equality. We hope to see dialogue in multiple areas and at various levels. Even if we cannot work things out anytime soon, such exchange of views will help boost trust and dispel misgivings. It will also help us better manage and mitigate our differences.

China and the United States have common interests. There are many areas where the two countries can cooperate. Last year, China-US trade bucked the trend and reached 4.1 trillion yuan, up by 8.8 percent over the previous year. The two countries need to put more energy on their common ground and expand converging interests. As permanent members of the UN Security Council, the two countries shoulder important responsibility for maintaining world peace and stability and promoting global prosperity and progress. We need to be future-oriented and overcome obstacles to move China-US relations in a direction of overall stability.