This work deals with international technology transfer, particularly to China through foreign direct investment (FDI). The book focuses on the technology transferability of inward investment, or the technological leap forward of Chinese firms through the local operations of FDI at present.

First published in 1999, this volume assessed the economic situation of Shenzhen in Guangdong Province, China, including its trade connections with Hong Kong and foreign investments in the area. Designated as one of four Special Economic Zones (SEZ) as part of China’s domestic economic reform in 1979, Weiping Wu examines Shenzhen’s economic situation in the context of Hong Kong’s transition just two years prior to publication in 1997. Wu explores the developments in Shenzhen in local policy, labor costs, export performance, domestic linkages and complementarity with Hong Kong as a result of Hong Kong’s closer connection with the Shenzhen trade area. Shenzhen’s suitability can then be assessed in its role as an SEZ to experiment with and digest western technology and management techniques for inland China and as a buffer between China and the wider world.

One of the most longstanding and significant issues in the U.S.-China trade war and international trade regulation in general has been the so-called “forced” technology transfer. To contribute to the ongoing debate over this issue, this article reviews the role of technology transfer in the evolution of China's foreign direct investment (“FDI”) regime over the past four decades and shows that the use of foreign investment to promote diffusion of advanced technology and know-how in the Chinese economy has long been rooted in the heart of China's FDI policy and remains fundamental for China's transformation to an innovative economy. This pursuit of economic upgrade and technological advancement is not illegitimate as it is common for countries to use similar policies for similar objectives at different stages of economic development. The question is whether China has done so in breach of its WTO obligations. To answer this question, this article examines China's new FDI regime and argues that while China has removed the controversial provisions in the relevant legislations, the regime leaves flexibility for China to “force” technology transfer in practice, particularly under the security review and retaliation mechanisms envisaged in the new Foreign Investment Law. It is submitted that the best way to address these outstanding challenges would be through the dispute settlement mechanism of the WTO as opposed to unilateral and confrontational approaches which have proven to be counter-productive. While WTO litigation is likely to be limited to “as applied” claims in specific cases, systemic changes may result from a series of successful “piecemeal” attacks over time. Given China's broad WTO commitments on technology transfer, we call for an increasing use of the existing rules to address any laws and practices that “force” technology transfer instead of negotiating new rules.

China is under close scrutiny both as a market that could provide massive returns to investors and because of its potential to become the most powerful economy in Asia. This new study examines the economic relationship between China and Europe, its importance and how it is likely to evolve. The book considers the flow of trade, direct investment and technology transfer and contains case studies of manufacturing industries (automobiles, toys, watches, telecommunications) banking and insurance. The trade relationship between Europe and China is being re-evaluated by both sides and this is a valuable contribution to that process.

With special reference to the reform policy and the encouragement of foreign direct investment, Chinese and British social scientists examine recent developments in the scientific policy, research and development, and technology transfer in the People's Republic. They consider case studies in Japanese technology transfer with implications for China, the experience of technical progress and technology transfer in the Soviet Union 1917-87, the adoption of innovations and the assimilation of improvements, Sino-Japanese technology transfer and its effects, export performance, and other topics. The 11 papers were presented at an April 1995 seminar in Beijing. Annotation copyrighted by Book News, Inc., Portland, OR