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Economic Transition in the People’s Republic of China and Foreign Investment Activities

The Transfer of Know-how to the Chinese Economy through Transnational Corporations: The Case of Shanghai

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Peter Werner

Transnational corporations play a central role in China’s economic transition. They are a crucial source for China to obtain advanced foreign know-how in order to modernise its economy. The increasing presence of transnational corporations has brought Chinese firms and employees exposure to foreign business practices and culture and, more precisely, to different types of foreign know-how. This book shows the impact and preconditions of know-how transfer through transnational corporations. Peter Werner presents empirical data gained from a case study in China’s largest and most dynamic city – Shanghai. Using an inter-disciplinary approach, the author introduces and examines three stages of the know-how transfer process. While much of the research on international business und transnational corporations has dealt with know-how transfer issues, very few studies have recognised and empirically linked these three stages to a comprehensive analytical framework and placed it into the context of a transition economy.
Contents: Theories, Effects, Trends of Transnational Corporations – Foreign Direct Investment in China – International Know-how Transfer – Inter-disciplinary Framework of Know-how Transfer – Case Study of Transnational Corporations in Shanghai – Context, Conditions, Impact of Know-how Transfer – Limits and Obstacles of Know-how Transfer.