The Chinese government wants to foster innovation and scientific achievement, but an ingrained reputation for academic and scientific misconduct are forcing companies to abandon their support for Chinese research projects. If a biotech companies publishes research about experiments in China, the research can't altogether be trusted. This hurts potential investments to China and slows the rate of high valued domestic research.

This reputation also hurts students who score nearly perfect on standardized test and have amazing recommendation letters. The risk is that the best students are crowded out by the cheaters, so it's the system of cheating that becomes more prevalent. … "Academic and Scientific Misconduct" has a significant impact, so an analyst should put more weight into it.