THE IMPLEMENTATION OF TECHNOLOGY-TRANSFER IN SINO-FOREIGN JOINT VENTURES

Among the different means of absorbing foreign technology such as licensing, buy-backs, co-production, joint ventures and wholly foreign-owned subsidiaries, it seems that the Chinese government has a strong preference for joint ventures. This paper attempts to put forward an explanation for the preference. It is followed by an in-depth discussion of the issues-recruitment, managerial skills, training and localization of production-which affect the implementation of technology transfer in Sine-foreign joint ventures. Finally, a conclusion is drawn arguing that unless a foreign investor has the human resources and experience to tackle the problems that may arise in a joint venture setting, other means of transferring technology to China may be more appropriate.