Technology Transfer In Chinese Automobile Industry

Abstract: The purpose of this research is to study foreign technology transfer, combined with government policies in the Chinese automobile industry. The Chinese automotive industry is interesting to examine because of its fast growing production and potential market, which attracts a lot of foreign automakers to establish strategic alliance in China. However, in terms of the studies and results, it is found that the China’s strategy of “ trade market access for technology” is not sufficient and Chinese automakers have not yet learned technologies from foreign automakers. By bringing together primary and secondary data from the public research and telephone interviews with evidence from the Chinese automobile industry, the over-­‐dependence of Chinese firms on foreign technology transfer and lack of technological capability is explained. Also, through the study of two automobile joint ventures (JVs) cases, it is found that the industrial policy has been heavily influenced the development of automobile industry and indigenous automakers must improve their technological capabilities.