China's State Council has approved a regulation on the management of the National Natural Science Fund that aims to discourage fraud and ensure funds are properly spent.

Xinhua News Agency on Monday was authorized to release the full text of the regulation, after the State Council collected public submissions on how science projects should be sponsored, supervised and managed.

Composed of 43 articles in seven chapters, the regulation stresses that any person in charge of a project who steals research findings or cheats in research must be replaced immediately or banned from applying for funding.

The regulation, effective from April 1, states that the establishment of the natural science fund aims to assist basic research and the main source of the funds is central finance.

The central government sets the budget for the natural science fund, but it encourages donations from individuals and organizations.

A managing body set up by the State Council is responsible for the management and supervision of sponsored projects.

The body will also set out plans and guidelines on how to use funds in accordance with national economic and social development strategies, and list priorities of fields or projects to be sponsored.

Special financial assistance should be given for training young talent in science and technology, according to the regulation.

A series of scandals at China's top universities last year raised public concern over the supervision of academics at higher-learning institutions.

In May, Chen Jin, a dean at Shanghai Jiaotong University, was fired for faking state-funded research on the Hanxin computer chip, and Liu Hui, of Tsinghua University, was dismissed as professor in March for forging academic achievements and work experience.

China's investment in science and technology reached an estimated 71.6 billion yuan (8.95 billion U.S. dollars) in 2006, up 19.2 percent from 2005, said Minister of Science and Technology Xu Guanhua last year.

Source: Xinhua