for SandT activities according to the needs end possibilities. Our Institutes of higher learning and production enterprises too raise funds for the purpose, but not reflected In national stati­stics. China's national expenditure on science and technology• excluding those In institutes of higher learning and enterprises, was 6,167 million yuan In 1982, and 7,400 ml J I len yuan In 1983• ebout 1.6 percent of the national Industrial and agricultural output. 44 0 lQ co "" Internal sources for financing research end development 1 Expenditures on scientific research In Chine come ·mainly from the financial sources Inside the country. These sources are already cited above. External sources for financing researcb aad developmeAt : Basically there are no external Rand D financial sources. Although some R and D project assistance has been received from the United Nations system, the amount has been very limited. In order to accelerate technical transformation process, China Is actively using foreign Investments and loans to purchase research and experimental facilities, yet these do not fall Into the category of Rand D expenditure. Incentives for Send T development according to policy goals: China has a number of policies and regulations for encourag­ Ing Initiatives In and promoting the development of science end technology. These Include •Regulations on Natural Science Award• for .scientists with major scientific discoveries or outstanding achievements, "Regulations on Inventions Award" for those with Important Inventions, and •Regulations on Award-for Rationaliza­tion Proposals end Technical Innovation• for those who have made significant contributions to enterprise technical progress. In addition, the Chinese government has adopted a series of economic policies In terms of taxation, pricing. loan provision and so on. to encourage Increased enterprise expenditure for developing new technologies and products. Income taxes on royal­ties received by foreign firms In China for their technologies are reduced or In some cases exempted. 
**Analysis**
The text primarily discusses the financing and policies related to scientific research and development in China, highlighting internal and external sources of funding, as well as incentives and regulations to encourage innovation and technological progress. This suggests that the text is focused on the scientific and technological aspects of China's development, with implications for the country's economic growth.

**Category**
Science and technology, Economic development