Technology transfer to China: alliances of Chinese enterprises with western technology exporters

Abstract

This article provides a detailed analysis on the potentiality for alliances involving technology transfer between Chinese enterprises and Western companies. It is based on a questionnaire survey covering 200 sample companies and factories in mechanical industries in China It covers technology imports from 1982 to 1997. A special diagram indicating alliance levels is provided, and sample Chinese recipients are shown. The main findings of the study are: 1. Chinese industries have enlarged their technology import scope in recent years, particularly after 1995. At the same time, the average size of each project has decreased dramatically, which reflects Chinese economic reform; 2. The proportion of hardware transfer is increasing, especially in licensing deals. This is a negative influence on Chinese industrial technology in that it is mature technology which is still largely transferred despite of a slightly positive change before 1992. 3. Ten different factors which influence the purchase of foreign technology by Chinese firms are provided. This is based on the perceptions of the firms concerned. A possible weighed factor system in technology assessment may be applicable to further transfers.