Some light reading.
“China’s auto industry has had similar experiences with JVs with foreign partners that in reality either transferred little technology overall or only transferred technologies that were basically obsolete in developed markets. This issue is likely to remain a sticking point between ACAE and potential foreign engine manufacturing partners because China will work hard to avoid being a secondary market into which outmoded technologies can be transferred to wring out a bit more profit. Automotive components, for instance, offer a great example of how IP protection did not work. Today, following years of assiduous technology transfer effort by multiple means, many Chinese JV partners are serious competitors in the domestic automotive component industry, threatening foreign suppliers, including in the area of R&D.”
