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

The transfer of technology in China is governed by a number of laws and regulations. Under the introduction of the “Foreign Investment Law” in 2019, foreign investors are allowed to make technology transfers and technology imports into China, as long as the technology is "advanced, applicable, and of benefit to social and economic development." Under this law, foreign investors are allowed to conduct technology transfers with their Chinese counterparties. Technology transfers can include the granting of a patent license, the granting of a trademark license, technology evaluation, and technology development cooperation. The transfer of technology must be conducted within the scope of the relevant joint venture contract and must also comply with Chinese law. In addition, the “Law on the Protection of Technology Secrets” and the “Technology Transfer Regulations” have been implemented in order to protect the intellectual property of both foreign and Chinese technology holders. The “Law on the Protection of Technology Secrets” requires that parties to technology transfer agreements respect the secrecy of technology within the scope of the contract. The “Technology Transfer Regulations” stipulate that foreign transferors must pay special attention to the protection of their own technology when transferring to or developing a joint venture with Chinese parties. In conclusion, the transfer of technology in China is strictly regulated by a number of laws and regulations. The laws and regulations in place are designed to protect the intellectual property rights of both foreign and Chinese technology holders, and ensure that technology transfers are conducted within the scope of the relevant joint venture contract. Therefore, it is essential to be aware of the specific legal requirements in relation to the transfer of technology in China.

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

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