China has the world's second largest research and development budget, and is expected to invest over $136 billion in 2006 after growing more than 20% in 2005. The Chinese government continues to place heavy emphasis on research and development by creating greater public awareness of innovation, and reforming financial and tax systems to promote growth in cutting-edge industries.

In 2006, President Hu Jintao called for China to make the transition from a manufacturing-based economy to an innovation-based one and the National People's Congress have approved large increases in research funding. Stem cell research and gene therapy, which some in the Western world see as controversial, face minimal regulation in China. China has an estimated 926,000 researchers, second only to the 1.3 million in the United States.

China is also actively developing its software, semiconductor and energy industries, including renewable energies such as hydro, wind and solar power. In an effort to reduce pollution from coal-burning power plants, China has been pioneering the deployment of pebble bed nuclear reactors, which run cooler and safer, and have potential applications for the hydrogen economy.

China currently has the most cell phone users in the world with over 700 million users in July 2009It also has the largest number of internet and broadband users in the world. (Source:Wikipedia)