Technology Transfer: A Mode of Collaboration Between the European Union and China

BEING ONE OF THE EUROPEAN UNION'S MAIN TRADING PARTNERS-ranking fourth in terms of both imports and exports expressed in value-China has emerged as an indispensable market for any multinational enterprise willing to avail itself of the opportunities represented by one of the fastest growing economies at the turn of the century. In order to close the technological gap with the developed economies of the world, China launched its open door policy in the late 1970s, the priority of which was to acquire foreign technology, capital, skills and management, as well as to cut dependence on imports. Foreign direct investment (FDI) and collaborative ventures in China, as important channels for technology transfer, have consequently grown massively. Owing to its size and development requirements, the People's Republic of China is one of the largest importers of technology in the world. During the 1950s it used to import technology from the former Soviet Union and from other East European countries. Since the late 19...