China Overtakes US in Research Spending, Threatens American Lead
China Overtakes US in Research Spending, Threatens American Lead

China has reached a milestone in scientific research, with its investment in research and development (R&D) now matching and, by purchasing power measures, surpassing that of the United States. According to a March 2026 report from the Organisation for Economic Co-operation and Development, both nations have crossed the US$1 trillion threshold in research spending.

The US has led global scientific and technological enterprise for 80 years, producing breakthroughs such as the internet, mRNA vaccine, transistors, semiconductors, and the Global Positioning System. This leadership was sustained by public investment in research universities and federal laboratories, driving over 20% of US productivity growth since World War II.

China’s rise has been rapid. In 2019, it surpassed the US in the share of the top 1% most-cited papers. By 2022, it led globally in most-cited papers overall. In 2024, China overtook the US in total scientific publications, the first time any nation has done so since the US surpassed the UK in 1948. That same year, China also led in the Nature Index, with a 17% advantage over the US, and filed roughly 1.8 million patent applications compared to the US’s 603,191.

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While China’s investment expands the global pool of discovery, the US is divesting from basic science. Federal R&D spending peaked in 2010 at about $160 billion and fell by over 15% in the following five years. Federal investment as a share of GDP dropped from 1.86% in 1964 to about 0.66% in 2021. The government now funds only about 40% of basic research, while industry performs 78% of US R&D but has withdrawn from open scientific publication.

Under the second Trump administration, US science agencies have slowed proposals for new research, and budget cuts threaten to deepen reductions. Additionally, restrictions on scientific exchange, including tightening access to institutions and scrutinising international collaborations, risk further eroding US leadership.

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