Policy Brief
November 2007
by Evan S. Michelson
Project on Emerging
Nanotechnologies
Woodrow Wilson
International Center for Scholars
China has emerged as one of the key global players in the field of nanoscience and technology (collectively known as "nanotechnology"). This policy brief examines China's rise as a nanotechnology power by, first, describing the potential and current state of nanotechnology applications, along with an overview of worldwide governance and oversight strategies. Second, it focuses on the rise of nanotechnology in China, highlighting China's increased policy emphasis, funding, and infrastructure development for nanotechnology. Third, it addresses some of the key actions China has taken to address the broader social impacts of nanotechnology, including the development of environmental, health, and safety regulation; participation in international oversight activities; and emphasizing public outreach and engagement. The policy brief then concludes with the assessment that China's rise as an elite nanotechnology country has the potential to create a renewed interest in ensuring the technology is developed in a safe and responsible manner.
"China is rapidly catching up to the U.S. in nanotechnology." This was the conclusion of journalist Andrew Batson in an article on the subject of nanoscience and technology in China published in The Wall Street Journal in September 2006.[1] How has the People's Republic of China (China) emerged as a key global player in this field, one that combines an interdisciplinary mix of researchers, a high level of investment and technological infrastructure, and significant support from government and industry? This policy brief will address these and other issues associated with China's nanotechnology activities.
Nanoscience and technology is defined by the National Nanotechnology Initiative in the United States as, "understanding and control of matter at dimensions of roughly 1 to 100 nanometers, where unique phenomena enable novel applications." Most commonly referred to as "nanotechnology," this emerging field of manipulating matter at the nanoscale is expected to become a key, transformative technology of the 21st century.
Many analysts have argued that nanotechnology will lead to "the next Industrial Revolution," ushering in a new era of manufacturing and engineering capabilities. Researchers are exploring ways to see and build at this small scale by re-engineering familiar substances like carbon, silver, and gold to create new materials with novel properties and functions. Not surprisingly, nanotechnology applications in areas as diverse as healthcare, energy storage, agriculture, water purification, and security are envisioned, and these anticipated developments have encouraged significant investments in nanotechnology research and development (R&D) worldwide, with Lux Research—a private research firm in the United States—estimating that by 2014, $2.6 trillion of "global manufactured goods" will use nanotechnology.[2]
A variety of nanomaterials are already being used in a wide range of consumer products, from sunscreens to sporting goods and from automobiles to clothing. In March 2006, the Project on Emerging Nanotechnologies at the Woodrow Wilson International Center for Scholars released an online inventory that now contains over 575 manufacturer-identified, nanotechnology-based consumer products that are available on the market from 20 countries, including the United States, the United Kingdom, and other European and Asian nations.[3]
There are 36 products from China contained in this inventory, including a number of products with antibacterial coatings, including chop sticks, air conditioners, and food storage containers.
In addition to the technical and commercialization aspects of nanotechnology, a robust debate has developed on the international level about the need for appropriate governance and oversight strategies to address nanotechnology's potential risks and benefits. Much like China, economies around the world (including Japan, India, Russia, and Latin America) are investing heavily in nanotechnology to race ahead of their competitors in order to benefit from the promises that the technology has to offer. Nanotechnology has also caught the imagination of researchers, investors, and policy-makers as a way to create jobs, lure foreign direct investment, and encourage national development. In short, nanotechnology has become a central science and technology policy topic in the United States, China, and other countries, and it is expected to pose a number of significant transnational governance challenges and opportunities for a wide range of stakeholders—including government, industry, and the public—in the near future. Questions related to policy support of nanotechnology research and development, the need for internationally coordinated risk research strategies, and the development of effective oversight mechanisms have been addressed by organizations from the United States Congress to the Organization for Economic Co-Operation and Development (OECD). It is envisioned that these broad ranging issues will have to be addressed in a collaborative and proactive manner in order to make certain that nanotechnology is developed in a safe, sustainable, and responsible manner.
China has been at the forefront of the worldwide trend in adopting nanotechnology as a main component of its strategic policy plans for future developments in science and technology. This was most recently enunciated in the February 2006 report National Medium- and Long-term Science and Technology Development Plan (2006-2020), where nanotechnology is identified as a "priority mission area"[4] and as a key frontier technology over the next 15 years. For China, the overall aim is to use nanotechnology R&D as way toward reaching its eventual goal of setting "the proportion of research and development expenditures at 2.5 percent of the gross domestic product."[5]
The 2006 Guide to Programs from the National Natural Science Foundation of China (NSFC) highlights "basic research on nano science and technology" as one of two new Major Research Plans for 2006, the broader aim of which is to "solve nano science issues that are of great importance in the progress of science and technology of China" and use nanotechnology commercialization toward "the development of the national economy."[6] The NSFC guide also highlights a range of interdisciplinary scientific goals, from studying "nano materials design and preparation" to "new theory and new methods for nano system construction," with particular and preferential emphasis on funding areas in "nano electronics and nano electronics devices" and "nanobiology,"[7] and these priorities are further developed in the more recent 2007 edition.
While it is difficult to determine exactly how much money China is spending on nanotechnology R&D, it is apparent from a number of estimates that China is directing substantial funding and financial investments toward nanotechnology.[8] Lux Research has estimated that the Chinese government spent $250 million on nanotechnology in 2005, putting it behind other leading nanotechnology countries like Germany and Japan but nevertheless on the rise.[9],[10] However, adjusting its investment for purchasing-power parity places China's nanotechnology spending second to that of the United States, at just over $900 in 2006 dollars.[11] Similarly, regional governments in China are investing in nanotechnology, with hotspots including Beijing, Tianjin, Suzhou, and Shanghai, the latter of which established the Shanghai Nanotechnology Promotion Center in 2001.[12],[13]
A key institutional development was the establishment of the National Center for Nanoscience and Technology (NCNST), under the auspices of the Chinese Academy of Sciences. Founded in 2003, the NCNST continues to establish a network of laboratories focusing on nano-electronics, nano-medicine, and characterization of nanomaterials. Writing in Science magazine in 2005, Chunli Bai, director of the NCNST, notes that "more than 50 universities, 20 institutes of CAS, and over 300 industry enterprises have engaged in nanoscience and nanotechnology R&D, with the involvement of more than 3000 researchers from different institutes, universities, and enterprises across China," but that in order "to move forward and become more competitive in nanoscience and nanotechnology, China needs to continue to expand its now-limited research infrastructure."[14]
Such investments by China have begun to translate into world-class research results in terms of published papers, paper citations, and patents. Several scholars have done bibliometric research looking into China's current nanotechnology publication rates. One study by Liu and Zhang[15] highlight various supporting points for this claim, noting that a 2001 Asia-Pacific Economic Cooperation (APEC) report indicated that China followed only the United States and Japan in terms of the number of nanotechnology papers published in that year. They also note that studies undertaken by the Scientific Citation Index indicate that during the 1992-2002 timeframe, the top four institutions with the most citations of published nanotechnology papers include the University of California-Berkeley, IBM, the Massachusetts Institute of Technology (all in the United States), and the Chinese Academy of Sciences. Finally, they cite an estimate that from 2000 to 2002, China ranked third behind only the United States and Japan in terms of the number of nanotechnology patents held. More recent studies analyzing publication outputs from 1999 to 2004 have shown similar results, with China maintaining its third place position with roughly 7,000 papers.[16]
There is concern at the global level that nanotechnology, because of its novel applications and material properties, will pose a series of challenges to governments around the world that are not yet prepared to address such difficulties. Such potential pitfalls are anticipated to impact China as well, as it continues its rise as a nanotechnology power and as it establishes itself as a key nano-manufacturing and production hub. As with many countries, China has begun to address concerns about the potential environmental, health, and safety (EH&S) impacts of nanotechnology; to consider the development of oversight and governance regimes; and to identify methods for increased public engagement and outreach efforts in order to raise awareness about the growing pervasiveness of nanotechnology in society.
China has begun to investigate EH&S issues in terms of focusing increasingly significant resources on studying the potential toxicological effects of nanotechnology. Under the auspices of the NCNST, China has established a Nanosafety Lab, located in Beijing, in addition to a network of EH&S research projects supported by the National Natural Science Foundation of Science. It is estimated that the Chinese government will spend nearly $5 million on such EH&S research from 2004-2010, an amount of money that, once again, may be substantial in terms of purchasing-parity power.[17] Finally, China has held two major international conferences exploring this and other topics, ChinaNano 2005 and ChinaNano 2007, and it is becoming evident that China is looking to play an increasingly substantial role in advancing nanotechnology EH&S research in the future.
Similar to other developed and developing countries, China is engaged in a range of national and international governance and oversight activities aimed at supporting the responsible development of nanotechnologies in a proactive manner. For example, in his Science article Bai notes that China has established a "national technical committee on nanotechnology standardization," charged with "strengthening the inspection of research facilities in public institutions and with meeting the needs of manufacturers in China."[18] In terms of the oversight of medical devices, the China State Food and Drug Administration (SFDA) decided in 2004 to that "medical devices made with nanometer biological materials" will fall under the appropriate medical device classification and regulated as such.[19]
There are a number of international oversight activities ongoing that will impact China as well as other leading nanotechnology countries. As mentioned earlier, the Organization for Economic Co-operation and Development (OECD) recently established a Working Party on Manufactured Nanomaterials to discuss issues surrounding the EH&S implications of nanotechnology, particularly in the area of chemicals and toxic substances. More specifically, both the Meridian Institute's Global Dialogue on Nanotechnology and the Poor (GDNP)[20] and the United Nations Industrial Development Organization (UNIDO) North-South Dialogue are explicit attempts to include developing countries in the global discussion of managing nanotechnology's risks and benefits.[21] The International Risk Government Council (IRGC) has also held a series of meetings to develop an oversight and risk management framework for nanotechnology through an elaborate consultation process that includes input from a range of stakeholders in multiple countries.[22] Finally, attempts to collect and detail "best practices" for worker protection and standardize nanotechnology nomenclature and definitions are occurring on an international basis, with efforts either completed or underway at the International Council on Nanotechnology (ICON)[23], the International Organization for Standardization (ISO)[24] and ASTM International.[25]
The commercialization of nanotechnology is happening as rapidly in China as in other leading nanotechnology countries. In a paper on the topic, Liu and Zhang have estimated that "the number of registered companies with a nanotechnology focus reached 800 by [the] end of 2003, resulting in a total of 10 billion RMB ($1.2 billion) in registered capital."[26] Lux Research has estimated that more than $32 billion in products incorporating nanotechnology were sold worldwide in 2005, a number that is only expected to grow, particularly in China, as more research is funded, more patent applications are filed, and more companies are formed.[27] However, a lack of awareness about nanotechnology's commercialization remains on the part of the general public around the world. Bai alludes to this potential lack of awareness about nanotechnology by the Chinese public by specifically noting that, "the scientific community need[s] to better inform and educate the public about the transformations this new era is likely to bring."[28] Without increased public engagement efforts, citizens and consumers may form negative public perceptions that could hinder nanotechnology's development far into the future.[29] There is also a rising tension between nanotechnology's hype and the potential for mislabeling or over-promising the benefits associated with nanotechnology applications. Bai notes that while there are rising numbers of legitimate and beneficial applications of nanotechnology being made available through commercialization—such as the use of photocatalytic nanoparticles in a self-cleaning glass coating on the new National Grand Theater in Beijing—some firms are taking advantage of nanotechnology's growing popularity as a buzzword and are "finding that they can raise their profits simply by adding the label 'nano' to their products."[30] It is imperative that such misunderstandings are avoided in the United States and China so that a consumer backlash does not occur and that the nascent nanotechnology industry has an opportunity to develop more fully over the long term.
It would be unfortunate if government agencies, in the United States, China, and elsewhere, squandered this unique opportunity to help direct nanotechnology along a responsible path, improve public confidence in the private and public sectors, and increase the capacity of public institutions to deal with the risks and challenges posed by cutting-edge innovation. Much remains to be done in order to ensure that nanotechnology will be developed in a responsible manner across all leading countries. However, addressing the transnational governance questions indicated above will not be easy. China has a unique opportunity moving forward in the 21st Century: encourage the development of proactive oversight systems that address EH&S, industry, and consumer concerns while, simultaneously, ensure that the technology is advanced and commercialized. While it may not surpass the United States, Japan, and the European Union as the undisputed global leader in nanotechnology, China is quickly surging ahead and should soon be considered amongst the elite countries that are investing in this technology. Doing so will require that a dual risk management approach be adopted, one that supports research into nanotechnology's greatest near-term risks and benefits while, simultaneously, looks prospectively to any transformations or shifts in the technology's development that that may occur in the future. Clearly, in order to adequately tackle these interrelated subjects, an open dialogue is needed that can produce imaginative approaches to the governance of nanotechnology.
Special thanks to Dr. Andrew Maynard (Project on Emerging Nanotechnologies, Woodrow Wilson Center), Dr. Richard Appelbaum (Center for Nanotechnology in Society, University of California-Santa Barbara), and Rachel Parker (Center for Nanotechnology in Society, University of California-Santa Barbara) for their helpful comments on this subject. Portions of this policy brief are based upon Evan S. Michelson, "Nanotechnology Policy: An Analysis of Transnational Governance Issues Facing the United States and China," in William A. Blanpied and Zhao Gang , eds., Proceedings of the US-China Forum on Science and Technology Policy, Arlington, VA: George Mason University; 2007: 345-58.
"Nanotechnology in China: Ambitions and Realities," web archive of event held at the Woodrow Wilson International Center for Scholars, Washington, DC, February 6, 2007. Includes event summary, webcast, and presentations.
"Podcast: CNS-UCSB Travels to China to Explore International Interest in Nanotechnology," Center for Nanotechnology in Society—University of California at Santa Barbara, Santa Barbara, CA, June 26, 2007.
"Innovation or Imitation? China's Bid to Become a Global Leader in Nanotechnology," Richard P. Appelbaum and Rachel A. Parker, Center for Nanotechnology in Society—University of California at Santa Barbara, Santa Barbara, CA, March 21, 2007.
NanoChin.cn, website dedicated to news and information about nanotechnology research in China.
"Impressions of China," author interview with Federal Technology Watch, Vol. 5, No. 5, January 29, 2007, pp. 8-10.
Louise Yeung and Evan Michelson, "China, Nanotechnology, and the Environment," China Environment Series 8, China Environment Forum, Woodrow Wilson International Center for Scholars, 2006.
Asia Pacific Nanotechnology Forum, website dedicated to nanotechnology in Asia.