BEIJING - China's Ministry of Science and Technology (MOST) will launch a yearly internal inspection, targeting the embezzlement of scientific research funds.

The inspection will focus on scientific institutes with a high volume of scientific projects that apply for large amounts of funding from the government, according to a circular issued by the ministry on Tuesday.

The ministry will establish a credit database based on the inspection results, and those with serious credit violations will be banned from applying for scientific funds.

The Chinese government spent 1 trillion yuan (about 162 billion US dollars) on research and development in 2012 , about 1.97 percent of its gross domestic product (GDP). It surpassed 2 percent for the first time to reach 2.05 percent in 2013.

However, much of the money has been misused, according to the MOST.

The ministry ask inspectors to uncover 11 violations including obtaining funds with false projects or fake invoices, misappropriating the funds, applying for excessive funds and use of funds to cover personal consumption.

Those found with violations will have their projects halted or funds taken back, the ministry said. In most serious cases, they will be banned from gaining such funds forever and may face judicial punishment.