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A Discussion on the Utilization of Foreign Investment and Technology Transfer in China's Household Appliance Industry
Zhao Lianrong
Lei Ping
International Symposium on Electronic Business and Information System, 2009-07-16 to 2009-07-18.
China's household appliance industry faces the least governmental interference. Foreign investment has made quite a positive impact on this industry, although it has also resulted in some unfavorable characteristics in the industry, including over-reliance on OEM, neglecting brand cultivation, lack of control over core technologies, and low profit margin resulting minimal funds available for R&D. This research examines the history of this industry in terms of foreign investment utilization and foreign technologies introduction. It then discusses the policy implications in this area, including promoting regulations in terms of better market rules and codes, encouraging innovation with more R&D investment, supporting cooperation in R&D amongst companies to develop core technologies, and advancing companies to actively participate in international cooperation and specialization.
Household Appliance Industry; Foreign Investment Utilization; Technology Transfer
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