What are the rules and regulations governing the transfer of technology in China?

In China, the transfer of technology is governed by various laws, regulations, and judicial interpretations. These laws and regulations are set out in the Promotion Law on Technology Transfer, Regulations on Encouraging the Transfer of Technology, and the Administrative Regulations on Technology Import and Export. The key principle of Technology Transfer Law is that foreign technology transferees (FTT) are allowed to send foreign technology to China for the purpose of setting up a joint venture with a local Chinese partner. This joint venture then has the right to possess and use the technology based on the transfer agreement between the original owner and the joint venture. In order for the transfer of technology to be successful, the following requirements must be met: (1) The technology must be legally obtained; (2) The technology must be of a certain level of quality; (3) The foreign company must have the ability to provide the necessary training and support for the Chinese company; (4) The foreign company must be able to prove that the technology will bring tangible benefits to the Chinese company; (5) The foreign company must not bring any unreasonable restrictions on the use of the technology; (6) The foreign company must not ask for any unreasonable royalty or transfer price. Additionally, the Regulations on Encouraging the Transfer of Technology offers incentives to technology transferors, technology developers, and foreign technology users. These incentives include tax exemptions, subsidization for investment, preferential loans, and preferential export policies. Finally, the Administrative Regulations on Technology Import and Export imposes restrictions on the transfer of technologies that may be harmful to national security, public safety, and related interests of China.

What are the rules and regulations governing the transfer of technology in China?

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