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China Modes of Transfer
The transfer of proprietary technology from a foreign
corporation is, among other things, a commercial transaction, and
such transactions take many forms. Chinese authorities have
selected joint-equity ventures as their preferred mode of
technology transfer. In such ventures, both the foreign and the
Chinese partner contribute capital, each provides what it has the
advantage in (usually technology and access to world market for the
foreign partner and labor and a factory for the Chinese partner),
and management and profits are split. Many major foreign
corporations with technology that China desires have been reluctant
to risk their capital in such ventures. But enough have agreed to
produce such items as jet airliners, computers, and machine tools
that Chinese authorities can claim success for their policy.
Data as of July 1987
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