Technological capabilities and foreign direct investment in China

Yizheng Shi*

*Corresponding author for this work

Research output: Chapter in book/report/conference proceedingChapterpeer-review

1 Citation (Scopus)


The desire for international technology transfer was probably the most important consideration when China’s leadership adopted its open door policy in the late 1970s. However, this was not the first attempt of China to acquire advanced technology from abroad. In fact, since the establishment of the People’s Republic, the acquisition of foreign technology has been the locomotive of China’s drive towards industrialisation that is the top priority in her economic development strategy. In the past, however, technology acquisition by China was exclusively through the channel of arm’s length transactions. Before the reform of 1979, technology transfer in China was confined to imports of foreign technology by state owned enterprises (SOEs) (Zhao 1995). The channel of transferring technology through foreign direct investment firms did not exist, since foreign ownership of the means of production in China was contrary to the ruling ideology at that time.

Original languageEnglish
Title of host publicationResources, Technology and Strategy
EditorsNicolai Foss, Paul L. Robertson
Number of pages18
ISBN (Electronic)0203982258, 9781134607501, 9780203982259
ISBN (Print)0415215854, 9780415215855, 9780415439602
Publication statusPublished - 9 Dec 1999
Externally publishedYes

Publication series

NameRoutledge Advances in Management and Business Studies

Scopus Subject Areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)


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