System-12: Wholesale Technology Transfer

Abstract

This case involves the comprehensive technology transfer of a foreign developed PDSS, System-12, through the establishment of a Belgian-Chinese joint production venture -Shanghai Bell. The System-12 technology transfer was set up immediately after the inauguration of economic reforms in China. This demonstrated the Chinese government’s early determination to modernise its telecommunications systems and build up indigenous technological capabilities by acquiring advanced foreign technologies. The central government played an important role in searching for collaborators and setting up this project. This section details the objectives of the Chinese government; its initiatives and the international environment for such an advanced telecommunications technology; and describes the scope of this technology transfer.