Xingming Wang’s scientific contributions

The transfer of technology to China, especially in the manufacturing sector, is considered to be a major contributor to its recent economic growth. However, we must distinguish between technology transferred by foreign companies into their wholly or majority-owned subsidiaries in China and the technology acquired by indigenous enterprises. It is only through the successful acquisition of technological capability by indigenous enterprises, many of which still remain state-owned, that China can become a really innovative and competitive economic power and not remain the world’s workshop. The authors revisited a number of state-owned industrial companies in Beijing and Tianjin, initially studied during the 1990s, to assess the levels of capability attained and the role of external sources and internal efforts in developing capabilities. Chinese public sector enterprise appear to be broadly following the East Asian model in which success has depended on technological and commercial collaborations with foreign firms, internal efforts to develop technological competence and being responsive to market conditions and policy changes.

This paper describes some empirical studies that have been carried out to investigate the characteristics of the Chinese steel industry in terms of technological renovation and its relationship with the more general question of technology tiansfer to China. Consideration is given to the question of technology valuation that is an issue when technology is being transferred between owners and acquirers. Comparisons are made between considerations of value in steel making and the results of earlier investigations in the machine tool sector.

Previous research into the transfer of technology between the UK and China has shown that the value of technology is a crucial question in most transfer negotiations and collaboration arrangements. To assist with negotiations a technology valuation model is being developed through a project supported by the UK Engineering and Physical Sciences Research Council. The main project focus is on technology transfer from the UK to China. Empirical data are being gathered from the machine tool industry to identify the factors that suppliers and acquirers consider when valuing transferred technology. The aspect of the model examined in this paper is how to assess the added value and secondary gain that can be captured both by technology suppliers and acquirers as a result of introducing more advanced machine tool technologies into Chinese industrial production.

As manufacturing becomes increasingly globalized the value of technology has become a crucial question when being transferred from suppliers to acquirers. Under many forms of transfer arrangement the value of technology cannot be considered in isolation from the nature of the arrangement itself which could range from one-off transactions to an equity joint venture or other forms of close partnership. The distribution of costs, risks and benefits varies substantially between types of arrangement as well as the specifics of the agreement. Previous research by the authors into the transfer of technology between the UK and China has revealed that the issue of reaching mutual agreement on the value of technology was a major handicap to many transfer negotiations. This paper describes the framework and progress with development of a technology valuation model. The main focus of the research is on machine tool technology being transferred from the UK to China. The results will assist companies in developing their technology transfer and global manufacturing strategies. The overall aim of the research is to develop a model using empirical data gathered from both countries to identify the factors that both technology suppliers and acquirers consider when valuing transferred technology. The model will provide a framework for assessing the components of value, their relative weights, the balance between them and how they are related to the form of collaboration between the supplier and acquirer.

Evidence from a survey shows that British engineering companies with a business interest in China recognise the potential benefits from technology transfer to China. The major strategic objective in transferring technology to China is to gain access to the Chinese market. British firms have a high opinion of the capability of Chinese enterprises to learn to use new technologies but they give a low rating to their managerial and technological capabilities and quality of existing equipment. Foreign companies appear to have a cautiously favourable view of the economic and political environment but the legal framework for doing business, time consuming negotiations, inconvenience of communications, bureaucracy, and unclear organizational authority are identified as the most difficult problems.

Evidence from a survey shows that British engineering companies with a business interest in China recognise the potential benefits from technology transfer to China. The major strategic objective in transferring technology to China is to gain access to the Chinese market. British firms have a high opinion of the capability of Chinese enterprises to learn to use new technologies but they give a low rating to their managerial and technological capabilities and quality of existing equipment. Foreign companies appear to have a cautiously favourable view of the economic and political environment but the legal framework for doing business, time consuming negotiations, inconvenience of communications, bureaucracy, and unclear organizational authority are identified as the most difficult problems.

Due to its fast growth China is rapidly becoming a focus for globalised manufacturing strategies and is now one of the world's largest markets for technology. The international transfer of manufacturing technology has also contributed significantly to the recent sharp increase in the rate of China's industrial development. The Chinese machine tool industry, for example, has exhibited an annual growth of more than 12% between 1980 and 1995 and is now one of the world's largest markets for machine tool technology. Technology transfer agreements are not only motivated by the willingness of foreign suppliers but also the desire of Chinese enterprises to acquire technology. One of the major problems in technology transfer is how to establish the value of the technology, Bruijin and Jia (1). In many cases partnerships between foreign companies and Chinese enterprises fail to become established because the value of technology cannot be agreed by both sides. It is therefore important to establish a method for valuing transferred technology. This paper outlines the concept of a technology valuation model which is being developed using empirical data from the machine tool industry. It is based on research carried out in the United Kingdom and China and draws on selected case studies of technology transfer in the machine tool sector supplemented by information obtained from questionnaire surveys carried out in both countries.

Results of complementary surveys of foreign and Chinese engineering enterprises with respect to their objectives and expectations regarding technology transfer into China show that the major strategic objective of foreign enterprises, to gain access to the Chinese market, fits well with Chinese enterprises' main objective of improving domestic competitiveness but less well with that of accessing world markets through technology transfer. Foreign firms rate highly the capability of Chinese enterprises to learn new technologies but they are much less sanguine than Chinese enterprises about the managerial capabilities, level of technological development and equipment quality of the latter and regard the inadequate legal framework as a significant obstacle.

Technology is increasingly becoming a commodity that is bought and sold on world markets or transferred by a variety of other means. Of all the industries to be affected by this phenomenon, electronics production has probably undergone the most dramatic transformation and in just a few years the structure of the sector has been massively transformed. Manufacturing is now increasingly footloose and globalised, attracted by low labour costs or local investment incentives, and the associated movement of technology has been an inevitable consequence. Nowhere has the transformation of the electronics industry been more remarkable than in China. Just ten years ago its electronic products lagged well behind world standards in terms of design, performance and quality, yet today China is on the verge of becoming a leading global player. This is not just due to its low production costs and ability to rapidly assimilate transferred technology, but is also the result of its own vast domestic market which offers the possibility of greater scale advantages than have been achieved elsewhere in the region. This paper discusses the emergence of electronics manufacturing in China and examines the role played by technology in enabling it to be transformed into a major world producer. It is based on research conducted in China during the last six years and draws on cases to illustrate how government industrial policy, coupled with foreign investment and technology inputs, have shaped the development and structure of the industry.

This paper presents the perceptions of British and other foreign companies on the situation in China with regard to technology transfer. It is based mainly on a questionnaire survey conducted by Aston Business School in collaboration with the China-Britain Trade Group, supplemented by selected interviews. The survey represents part of a wider program of research into industrial development and technology transfer under China's economic policy reforms, funded by the British Council, which is being conducted in partnership with the People's University of China. The findings from the survey and interviews shows that the potential for technology transfer to China is well recognized but possible obstacles such as time consuming negotiations, inconvenience of communications, bureaucracy, and vague organizational authority are also identified. Culture differences have become increasingly understood and generally accepted but their influence is also seen to extend to commercial habits and management methods and attitude. In many industries the shortage of managerial know-how, poor quality of currently-used equipment, a lack of good infrastructure support, and the unsatisfactory protection of transferred technology are inadequacies which prevent effective absorption of technology, guaranteed product quality, and willingness to transfer advanced foreign technology. Opinions on the effectiveness of information sources are heavily influenced by each individual company's contacts with, or visits to, China. There are variations in perceptions concerning Chinese economic policy, level of technological development, conditions of equipment, managerial know-how, and skills of the labour force which may suggest an imbalance in Chinese industrial development between different industrial sectors and enterprises.