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APEC Internationalization Survey 99

Science & Technology

The Chinese Government engages itself in positively international cooperation to contribute to international S&T development and adopt foreign advanced S&T results in the way of co-operative research and S&T personnel exchange and etc.

China has established bilateral S&T co-operation agreements with 86 foreign governments. SSTC has been positively promoting the R&D co-operation of institutes, universities and enterprises of China with foreign ones. There are also several bilateral and multilateral R&D institutes established in the field of biology, information technology, energy and others.

Reasons for locating R&D facilities

Ten industries evaluated this economy in an APEC-IST survey conducted in 1999. According to the APEC-IST survey, the following are the top 6 reasons for locating R&D:

• Establish an integrated system ranging from R & D to production & sales
• Introduce new products and services
• Establish a regional R & D base in this economy
• For logistics reasons
• Close to market or customers
• R&D support for manufacturing facility and servicing customers

Factors affecting R&D internationalization

According to an APEC-IST survey conducted in 1999, the following 3 factors encourage R&D internationalization:

• Housing, recreation and shopping facilities
• Special tax and other tariff concessions for new enterprises
• Special export tax concessions

The following 7 top factors discourage R&D internationalization:

• Technology / knowledge transfer
• Language and verbal communication
• Regulations regarding remittances of profits, royalties and technical assistance fees
• Requirement that component parts of an assembled product be manufactured in the economy.
• Price controls or limitations on profits
• Restrictions of foreign investments to certain fields
• Ownership or occupation of land by foreign entities

Co-operation and competition with other players

According to an APEC-IST survey conducted in 1999, some of the respondents indicated sub contracting to local companies. On factors for collaboration, price received positive scores. There was some concern about quality and legal support.