Chapter I General Rules

Article 1 In order to regulate the use and management of National Natural Science Funds, advance the efficiency in the use of National Natural Science Funds, promote the basic research, cultivate science and technology talent, and intensify the independent innovation ability, these Regulations are formulated in accordance with the Law of the People's Republic of China on Scientific and Technological Progress.

Article 2 The state establishes the National Natural Science Funds in order to subsidize the basic research as prescribed in the Law of the People's Republic of China on Scientific and Technological Progress.

Article 3 The National Natural Science Funds are mainly funded by the allocations of the central treasury, and any donation from natural persons, legal persons and other organizations is encouraged by the state.

The central treasury will incorporate the national natural science funds into the budget thereof.

Article 4 The grants made by the National Natural Science Funds shall comply with the principles of openness, justice and impartiality, as well as the guidelines of respecting science, developing democracy, advocating competition, improving cooperation, prompting innovations and guiding the future.

Article 5 When deciding the projects to be subsidized by National Natural Science Funds (hereinafter referred to as funded projects), the professionals shall be brought into full play, and the mechanism of macro-guidance, independent application, equal competition, evaluation by the experts working in the same field and selecting the best for support shall be adopted.

Article 6 The natural science fund management organ of the State Council (hereinafter referred to as fund management organ) shall have the responsibilities of managing the National Natural Science Funds and supervising the implementation of funded projects.

The competent authority of science and technology of the State Council shall have the responsibilities of the macro-administration and overall coordination of the work concerning National Natural Science Funds. The competent authority of finance of the State Council shall administrate and surveil the budget and finance of National Natural Science Funds. And the audit department shall surveil the use and management of National Natural Science Funds.

Chapter II Organization and Planning

Article 7 A fund development plan and the annual directory of funded projects shall be formulated by the fund management organ in light of the plan for national economic and social development, the plan for scientific and technological development as well as the circumstance of scientific and technological development. The fund development plan shall detail the fields to be developed with precedence, and the annual directory of funded projects shall indicate the scope of projects to be supported with precedence. Exclusive funds shall be set up under National Natural Science Funds for cultivating young science and technology talent.

The formulation of a fund development plan and the annual directory of funded projects by the fund management organ shall widely heed the opinions from the higher education institutions, scientific research institutions, academic groups, as well as related state organs and enterprises, and organize related experts for scientific demonstrations. The annual directory of funded projects shall be announced 30 days before the receipt of the applications for funded projects.

Article 8 The higher education institutions, scientific research institutions or any other public welfare institution that has the independent legal person qualification and develops basic research within the territory of the People's Republic of China may make registration at the fund management organ as supporting institutions.