The PRC's Policy of Technology Acquisition: Some Aspects

Abstract

The article overviews some recent developments regarding the PRC's behavior in its acquisition of foreign technology. A brief description is given of two possible typologies which can be used in distinguishing various forms of technology. Some of the more important mechanisms of transfer as well as of some of the potential problem areas relative to the transfer of technology are outlined. The development of the PRC's behavior, the composition of its technology imports and some of the changes that have occurred are described. The so-called 'turn-key' plant program is discussed and an attempt is made at providing some explanation for the change in attitude and behavior since 1978. In the context of the marked shift which occurred in 1978-1979, a description is given of the PRC's attempt to diversify its means of acquisition — through such mechanisms as the use of foreign credit, the acceptance of foreign investment and other forms of economic participation in the domestic economic sphere — and increase the level of specificity where the technology 'package' acquired is concerned. In a second section, some ideas are put forward on some of the variables which should be taken into account when attempting to analyze the technology acquisition policy. It is argued that use should be made of (a) variables relative to economic issues, (b) variables relative to technological issues, and (c) variables regard ing the political process in the PRC. The first two groups can to a varying degree be expected to interrelate and find expression in the third. In the context of the third group of variables, a distinction is made between various levels of policy-making, and additionally some propositions are put forward in connection with interferences that could be made regarding PRC policy statements. Finally, a brief discussion indicates the role played by external factors in the PRC's behavior in respect of its foreign economic relations and its acquisition of foreign technology.