Science & Technology and Education Chengdu now has 22 higher education institutions,
graduating over 30,000 bachelors and 5000 master or above holders annually. There are
over 80 technical schools with over 150,000 students on roster. The city has 114
doctorate training stations, over 10 post-doc research stations, 15 key national subjects,
18 key laboratories, and over 2700 research institutions， including over 70 research
institutes, 31 enterprise technology center, 6 national key labs, 27 academicians, 523
doctorate advisers and 490,000 various professional technicians.
Human Resources Chengdu is advantageous in total quantity of talented people compared
with other major Chinese cities. Professionals total at 490,000, ranking the fourth in the
country and the first in the west, including 4% of master holders; 30% of bachelors and
40% of technical school graduates. There are about 50,000 professionals on IT, or 10％ of
the total and 40,000 on mechanics or 8％ of the total
Comparison of Talented People among Major Chinese Cities
10,000 people
City Chengdu Qingdao Suzhou Guangzhou Xian Nanjing
Total 49.8 32 31 55 40.8 39.2
Chengdu also has over 80 technical schools of various kinds with 150,000 students on
roster, training over 2000 technical workers in IT field and 3500 in mechanical field, all
passing the certification of the nation‘s vocational qualification identification institution.
In terms of high-caliber talented people on IT and mechanical field, Chengdu ranks the
first in their quality and density in west China. Over 50% of the academicians located in
Chengdu are involved in the two fields, the same for roughly the two thirds of total
technicians.
Wage Guide for Manufacturing Personnel in Chengdu Yuan/Year
Rank Junior Middle Senior Technician
Instrument Technical 5140-13650 5457-14108 7613-34588 11232-34651
Electronic Components Technical 5976-14172 6000-14502 6972-15171 9000-21600
Electronic Assembly Workers 5070-10698 6576-12540 7092-15053 8688-15384
Note： excerpted from《 Wage Guide for Partial Vocations in Chengdu Labor Market》 .
The University of Electronic Science and Technology and the Sichuan Industrial College,
among the 22 colleges, are furnished with a complete cluster of subjects from
fundamental to highly advanced, with over 20 majors on IT and information and over 30
on mechanics. There are 108 key national majors, 454 master training subjects, 181
doctorate training subjects and 41 post doctorate research stations in Chengdu, every year
generating a talent pool of 18 thousand ranging from bachelors to doctors.
2002 Graduation on Fields, Chengdu
Major Mechanics Materials Physics Electronics
College Graduates 2814 533 827 6850
Research and Development Chengdu possesses 70 research institutions, 31 technology
centers, 6 key national laboratories, 31 various specific research bases and 9 national
engineering and technology centers.
In electronic field are there University of Electronics Science and Technology, #11
Research Academy of Ministry of Information Industry, #10, 29, 30 Institutes of Ministry
of Information Industry, #5 Institute of Postal and Communication, #57 Institute of the
General Consultative Department of PLA, #611 Institute of Aviation and Astronautics
Administration, Sichuan University, Southwestern Transportation University, Chengdu
Branch of Chinese Academy of Sciences, and Chinese Academy of Engineering Physics,
forming a number of key subjects, key labs, engineering and technology centers,
constituting a sound system of basic, applied and development research, generating
thousands of scientific achievements annually.
Contact Us
Bureau of Investment Services, Chengdu Hi-tech Zone
Website: http://www.china-west-invest.com/
http://www.cdht.gov.cn/
Fax: 028-85176329
Office time: weekdays 9:00-17:00
Department of Comprehensive Affairs: 028-85158812 85151257
Coordinating between departments and the center
Collection and compiling of investment projects, information networking and other
activities
Office work including documentation, filing, storage, logistics, financing and accounting
Department of Foreign Investment: 028-85178684
Accommodation, negotiation and consultation on foreign invested projects
Services and management of key foreign invested projects; offering suggestions and
opinions for project handling
Services for capital utilization of at-the-year projects, ratification and management of
foreign invested projects
Department of Foreign Enterprises: 028-85153026
Responsible for the change, expansion, actual foreign capital utilization, yearly
inspection, statistics and record filing;
Ratification of commodities importation and handling formalities for tax exemption for
imported equipment.
Ratification for the im-ex rights for manufacturing enterprises.
Investment Service Center
The carryout of the one-window services
Providing consultation for investors regarding investment policies, investment
environment and investment procedures
Providing services on ratification, registration and record filing for investors to set up
companies, branches and offices.
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Brief Introduction ■ Chengdu Hi-tech Zone was initiated in 1988 and ratified as a state-
ranked hi-tech industrial development zone in 1991. In 2000, Chengdu Hi-tech Zone was
approved to be a member science park of APEC. The Hi-tech Zone is the first area in
west China certified by IS014001 by both Chinese auditor and British UKAS.
■ With a planned area of 82 km2, the Zone consists of the south zone and west zone.
■ Chengdu Hi-tech Zone south zone
The south zone is located at south of the city with a planned area of 47 km2. The Park
was the major starting industrial area of the Hi-tech Zone and now functions as a key area
for the city‘s south expansion and will be built into a modern commercial center, a
nationally first-class innovation base, a regional financial and administration center and a
knowledge-based science park.
■ Chengdu Hi-tech Zone west zone
The west zone is located at the entrance of the golden tourism corridor of ―Chengdu-
Dujiangyan-Jiuzai Valley‖ with a planned area of 35 km2. As an important base for the
province to execute the so-called ―Number 1 Project‖, the park is the international
manufacturing base of the Hi-tech Zone. The park is focused on the microelectronics-
oriented IT industries, pharmaceutical industries based on modernized traditional
medicine and precision mechanical industries characterized with advanced technology.
■ Sichuan Chengdu Export Processing Zone (EPZ)
■ The EPZ was the first state-ranked EPZ in west China as ratified by the State
Council in April 2000 with a planned area of 3 km2.
■ The EPZ South Park is located at the South Zone of the Hi-tech Zone, 11.4 km away
from the city center Tianfu Square, 16 km from Shuangliu International Airport, and 5.4
km from Chengdu South Cargo Railway Station, with 0.6 km2 for the first phase
development.
■ The EPZ West Park is located at the West Zone of Chengdu Hi-tech Zone, right
adjacent to Cheng-Guan Expressway, 8 km away from the Northern Railway Station, and
22 km from Shuangliu International Airport with a total area of 1.5 km2.
■ The EPZ is monitored under a gate-controlled fully-closed manner around-the-clock.
Cargo may be supervised either on direct or trans- shipment, only required for ―one-time
declaration, one-time inspection and one-time examination‖. Customs supervision is
networked, and a guarantee deposit is not required for processing trade, nor is the
.
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Geology and topography In the Zone, the altitude averages around 477 meters. The
vertical layering of soil is filemot dusty clay (3.5 m), silt (5.8 m), and cobble (22 m). The
cobble layer is mostly granite and basalt. The upper layers are all sedimentary deposits of
the Pliocene, Quaternary; below is the water-free purple mudstone from the Cretaceous.
.
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Public Utilities Water Supply
The water supply network in the Zone is connected with the municipal network, able to
provide 500,000 m3 /day of water to the Zone, pressured over 0.14 Mpa. The water
quality is better than the National Drinking Water Standard, GB5749-86, and complies
with the Standard of EEC (98).
Water price: 1.05 yuan/m3 for domestic use; (1USD = RMB 8.3 Yuan), 1.30 yuan/m3 for
industrial use; 1.85 yuan/m3 for commercial use. The wastewater discharge fee is 0.30
yuan/m3. Total water price (including wastewater discharge fee) for industrial use is
therefore 1.60 yuan/m3.
Power Supply
Municipal power network can supply a total capacity of power up to 12 billion kw.h/year
to the Zone.
The power supply network in the Zone is connected with the municipal network. At
present, it has two transformer stations of 220 kV with a capacity of 450,000 kVA and
five transformer stations of 110 kV. There are two 110 kV transformer stations under
planning. The reliability of power supply is 99.96%.
The power price will follow the city industrial power uses.
Natural Gas Supply
Municipal natural gas network can supply a total capacity of natural gas up to 1.52 billion
m3. Gas price: 1.01 Yuan/m3 for industrial use; 1.12 Yuan/ m3 for domestic use.
The gas supply network in the Zone is connected with the municipal network, providing
400 000 m3/day of gas to the Zone. The main pipeline, with a diameter of 219 - 273 mm
and working pressure of 0.8 mPa/cm2, will provide an uninterrupted natural gas supply.
The natural gas does not contain H2S and other acidic gases, thus non-corrosive on
equipment and burning devices.
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Telecommunication In the Zone, telecommunication facilities have been installed,
forming a modern telecommunication system of microwave, optical fiber, satellite,
programmable telephone, pager, facsimile, and Internet. At present, there are 8 module
bureaus in the Zone with a total capacity of 600 000 switch telephone. Services of
multiple interfaces of 10 - 155 M or even to 2.5 G bandwidth could be provided.
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Pollution Prevention and Control The Environmental Management System specified by
ISO 14001 is strictly carried out in the Zone. Waste water discharged by the enterprises
in the Zone must comply with the standard of GB8978-1996, and waste gases emitted by
the enterprises must comply with the National Waste Gas Emission Standard, GB16297-
1996. Industrial noise generated by the enterprises in the Zone must comply with the
National Boundary Noise Standard for Industrial Enterprises, GB12348-1990.
Sewage pipeline network has been constructed in the Zone and connected with the
municipal ones. The waste water from the enterprises inside the Zone is transported to
Sanwayao Sewage Plant (currently with a capacity of 300 000 tons/ day) for treatment to
reach the Grade 1 of the National Comprehensive Waste Water Discharge Standard,
GB8978-1996.
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Fire Preventing and Public Security The Zone carries out stringent fire preventing
measures. Through high-standard planning and establishment of fire-preventing facilities,
the Zone prevents fire accidents to a maximum level.
The sufficient police forces ensure the public securities in the Zone. In past years, the
criminal case rates remain the lowest in the city. According to the public polls,
satisfaction rate of residents for public security of the Zone has maintained over 99.4%
and that of enterprises as high as 100% in past years.
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Services for Investment The Zone has an authority the same as municipal administration.
For important investment projects, Chengdu Municipal Government will appoint a
special working team to handle all the affairs between enterprise and government.
An Integrated Investment Service Center has been set up in the Zone, where the staff
members are well up in international practices with proficient English capability,
performing one-stop service to guarantee ―Convenience, Simplified procedures, ‗Urgent
matters urgently handled and special matters specially handled‘‖.
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Export Processing Zone Sichuan Chengdu Export Processing Zone (hereinafter called
―the EPZ‖) was ratified by the State Council as one of the first 15 export processing
zones in the country in April, 2000. The EPZ passed the state inspection in June, 2001.
The planned area totals 3 km2 and the first phase 0.6 km2. The EPZ is situated in
Chengdu Hi-tech Zone, 11.4 km away from Tianfu Square (the center of the city), 16.4
km away from Shuangliu International Airport, and 5.4 km away from Chengdu Southern
Railway Station (a large cargo transportation center). The Outer Beltway, the Airport
Expressway, Chengdu-Yaan Expressway and Chengdu-Leshan Expressway furnish a
convenient transportation network.
In 2002, the state ratified the establishment of the Sichuan Chengdu Export Processing
West Zone with a planned area of 1.5 km2, located inside the west region of the Chengdu
Hi-tech Zone (currently under construction).
The customs and commodity inspection have set up working offices at the Export
Processing Zone with services available in ―5 working days, all week long‖, receiving
pre-claiming around-the-clock for customs clearance. Goods imported and exported will
be customs supervised through direct or transit transport, implementing the so-called
―one-time declaration, one-time verification and one-time checking‖.
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International School There are several international schools in Chengdu which educate
international students, such as Chengdu Meishi International School, and Chengdu
Normal Yindu Primary School. These schools employ original foreign textbooks and
foreign teacher. Tens of international students across entire world are studying the
schools. Charge Class:￥ 10,000-20,000 per year. (Include boarding, book, living and
other expenses)
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Economy Chengdu is one of the largest and most developed cities of China. The
economy has been growing rapidly in recent years. In 2002, the city‘s GDP reached
166.32 billion yuan, with a per capita GDP of 16239 yuan, ranking the first in west
China. The industry is soundly structured, especially strong in IT, mechanics (including
automotive), pharmaceutical and food industries, yielding 70% of the city‘s total
industrial output. First, second and tertiary industries ratio at 8.4： 45.6： 46.0 with the
tertiary industry growing robustly. The consumption retail volume reached 70.95 billion
and the fixed assets investment 70.22 in 2002.
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Transportation Chengdu possesses solid aviation, railway and highway transportation
facilities. Chengdu Shuangliu Airport is the fourth largest of the nation with 245 domestic
flights and 9 international to Tokyo, HongKong, Singapore, Bangkok, Seoul, Osaka,
Fukuoka, Kuala Lumpur and Katmandu. Chengdu is located at the intersection of Bao-
Cheng, Cheng-Yu and Cheng-Kun railways, an important railway transportation and
transit center. High in road density, the highway reaches 14817 km, with 351km
expressway and a density of 1.08 km/km2. Chengdu-Shanghai Expressway, currently
under construction, will connect Chengdu with the coastal area.
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Telecommunication As one of the 8 major communication hubs, Chengdu is a main node
for China‘s ―8 vertical and 8 horizontal‖ and Sichuan‘s ―3 vertical and 3 horizontal‖
optical fiber networks. Communication services cover over 180 countries and regions and
over 600 Chinese cities. The switch phone capacity reaches 4.609 million with over 3
million residential, 3.063 million mobile phone subscribers and 1.5 million Internet users.
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Finance With the regional branch of the People‘s Bank located in Chengdu, the city has
2536 financial, 15 insurance institutions, and 87 securities trading departments with 1.87
million stock investors. The stock trading volume ranks the third in the country, only
second to Shanghai and Shenzhen. Singapore United Bank, Standard and Chartered,
Thailand Bangkok Bank, Tokyo Bank and Paris National Bank all set up representative
offices and Singapore Overseas Chinese Bank established a branch in Chengdu.
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Science & Technology and Education Chengdu now has 22 higher education institutions,
graduating over 30,000 bachelors and 5000 master or above holders annually. There are
over 80 technical schools with over 150,000 students on roster. The city has 114
doctorate training stations, over 10 post-doc research stations, 15 key national subjects,
18 key laboratories, and over 2700 research institutions， including over 70 research
institutes, 31 enterprise technology center, 6 national key labs, 27 academicians, 523
doctorate advisers and 490,000 various professional technicians.
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Environment Chengdu has a favorable environment, one of the state-ranked hygiene
cities. City forestation and green coverage reach 22.6% and 21.8% respectively. 1998, the
city was awarded with ―Human Habitation Reward‖ by the United Nations for the Funan
River Renovation Project. City noise level maintains below db 55 and road noise level
around db 68.0. Air is of good quality, with air pollution index normally below 100.
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Foreign Investment There are over 3000 foreign invested enterprises, covering
mechanics, electronics, food processing, pharmaceuticals, bio-technology and services
industry. 78 top 500 companies have invested in Chengdu including Motorola, IBM,
Intel, United Technologies, Coca Cola, Pepsi Cola, Toyota, Sumitomo, Shinoka,
Marubeni， Lafarge cement、 GM with 38 setting up solely owned or joint ventures and
40 setting up representative offices.
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Tourism The city is rich in tourism resources, one of China‘s ―Excellent Tourism Cities‖.
In 2002, the city accommodated 28.09 million domestic tourists and 401000 international
arrivals.There are 9 key national cultural relic sites including Wuhou Temple, Dufu
Cottage and Yonglin Tomb and 2 state-ranked scenic areas of Dujiangyan and Western
Snow Mountain and 3 state forest park including Longchi and 2 state natural reserves
including Anzihe.
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Transportation 1. Airway
Chengdu Shuangliu International Airport is the fourth largest gateway airport in China
and was just recently renovated in 2001. Total 240 flights are now in function connecting
48 domestic cities and Hongkong, Singapore, Katmandu, Bangkok, Seoul, Paris, Tokyo
and Osaka. Only 6 km from the Chengdu Hi-tech Zone, it only takes less than 10 minutes
to get to by driving. The passengers total 5 million and cargo 30,000 tons per year. In
2000, the turnover of the airport reached 212 million. ton.km and 88.24
million.person.km respectively.
2. Railway
The four trunk railways, Chengdu-Baoji, Chengdu-Chongqing, Chengdu-Kunming and
Chengdu-Dazhou intersect in Chengdu and the North and South Railway Stations are the
biggest passenger and cargo centers respectively in Southwest China. The passenger and
freight reached 28.93 million.person.km and 8.589 million.ton.km in 2000 respectively.
3. Road
The five vertical and three transverse backbone road of Chengdu-Yaan expressway,
Yuanhua road, Zhanhua road, Tianfu boulevard, the south extension of the Hongxing
road and the second belt road, third belt road, outer beltway crisscross the Chengdu Hi-
tech Zone. The No.1 subway will run through the zone north to south.
Chengdu is furnished with the densest road networks in the country. Roads total 13,374
kilometers within the city boundary. The expressways of Chengdu-Chongqing, Chengdu-
Mianyang, Chengdu-Leshan and Chengdu-Yaan Chengdu-Dujiangyan, and external belt
expressway are now in function and Chengdu-Nanchong expressway is under
construction. The passenger and freight reached 7.122 million. person.km and 11.481
million.ton.km in 2000.
4. Port
Leshan and Chongqing are the nearest inland ports to Chengdu. Time needed to reach
main ports of China is as follows:
Shanghai: 2 hours by air;
Yantian port, Shenzhen: 2 hours by air;
Guangzhou: 2 hours by air. .
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Renvironment and its Quality 1. Environment
(1)Geographical Position
With a longitude of E104°0045~ E104°0443 and latitude of N30°3140~ N30°368,
Chengdu Hi-tech Zone is located in the southwest of the city, right on the planned
southern expansion area of Chengdu. The Hi-tech Zone marks First Belt Road as its north
border, Fu River as the east border, Huayang town in the south and with Wuhou in the
west. South to north length maximizes at 12.1 km, and width 6 km, with a total area of 47
km2. (2) Geology, Topography and Soil
As a typical hinterland terrain, Chengdu Hi-tech Zone is located in the southwest of the
Chengdu plain with a topography high in the west and low in the east. The altitude
averages around 477 meters, underground water is less than 3 meters, and slopes less than
0.2%. The east was the lowest in the whole zone.
Geologically, the land is composed of Longquan fault, Chengdu Depression, and
Longmenshan Terrace. The vertical layering of soil is filemot dusty clay (3.5 m), silt (5.8
m), and cobble (22 m). The cobble layer is mostly granite and basalt.
The groundwater is alkalescent (CaCO3 ) and non-corrosive, and all the indexes meet the
national standards for drinking-water.
No fault has been detected in Chengdu Hi-tech Zone, and the anti-seismal intensity is
rank 7. The land situates on the secondary terrace of the Min River water system, and is
ranked as grade I for construction. The topography presents typical fan-shaped alluvial
plain with a black middling hard soil, 10 40 meters in thickness.
(3) Water System and Hydrology
The water system in Chengdu Hi-tech Zone is of Dujiangyan automatic flow irrigation
system and consists of Fu River, Xiaojia Chimb and Langan Dyke, among others. The
waters originate from the Min River water system, convenient in irrigation. The Fu River,
stretching 10 km in the zone, flows from north to south and marks the east border of the
zone. The annual discharge keeps on 3.2 billion cubic meters, and Langan Dyke, a main
perennial stream, averages 3.3 million cubic meters.
Most of waste water from the manufacturers inside Chengdu Hi-tech Zone is discharged
to drainage network after preliminary on-site treatment, and then transported to
Sanwayao Sewage Plant (currently with a capacity of 400000 tons annually) for further
treatment to reach the first grade national standard (PH: 6-9, COD: 60mg/l, BOD 5-20
mg/l, SS: 20mg/l) and finally discharged to the Fu River.
(4) Climate and Weather
In subtropical humid monsoon belt and influenced by the basin terrain and regional
atmosphere conditions, Chengdu is characterized with a monsoon climate with mild
winter and summer, distinct seasons, short autumn and long summer, gentle wind speed,
low air pressure and high humidity. The annual temperature averages 16.4 °C. Chengdu
enjoys plentiful precipitation of 997.6 1,300 mm annually, with spring 15-17%, summer
59-62%, fall 20-22% and winter 2-3%. The dominating wind orientation is NNE, N and
NE and annual wind speed averages 1.2m/S, and still-wind frequency 46%. The frost-
free period is about 300 days.
2. Regional Environmental Quality
(1) Atmosphere
The atmosphere quality, according to the environment monitoring station, is ranked as II
or good in Chengdu Hi-tech Zone.
(2) Water
Fu River and Langan Dyke comprise the main waters in Chengdu Hi- tech Zone. The
detective result in 2000 shows that the water quality in Fu River and Langan Dyke meets
the national IV standard (GIIZBI-1999) and the local legislation.
Most of the drinking water in Chengdu Hi-tech Zone is supplied from the water network
of Chengdu, and the groundwater meets the national III standard (GB/T14848-93).
(3) The Acoustical Environment
According to 2000 report by the Environmental Monitoring Station, the regional noise in
Chengdu Hi-tech Zone averages 56 dB(A) daytime and 47 dB(A) night, meeting the
national 2 standard (GB3096-93).
(4) Solid Waste
Slag is the main solid waste in Chengdu Hi-tech Zone, approximately 100000 tons per
year. 100% of the slag has been recycled in producing cement, brick and road filling.
Besides, 90% of other 1500 ton solid waste in the zone, most packing materials, is
recycled. For the poisonous (virulent) or radiative waste which the enterprises can not
treat by themselves, the Chengdu Municipal Solid Waste Processing Station and Sichuan
Provincial Radiation Monitoring Center are entrusted for the treatment.
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Requirements for Environmental Protection 1. The Guideline
The Hi-tech Zone will stick to the fundamental national policy of environment protection,
and promote the synchronous advance and implementation of the economic development,
infrastructure construction and sustainable development.
The Hi-tech Zone will carry out standard international environment management system,
persist to pollution prevention, strengthen pollution control, enhance environmental
awareness, and practise a normalized administration, so as to boost the environmental
efforts of government and enterprises.
Following the criteria of environmental protection for the national model city, Chengdu
Hi-tech Zone will be constructed into an ideal habitat for hi-tech enterprises.
2. In accordance with the ISO14001 system, the Management Committee of the Chengdu
Hi-tech Zone encourages establishment and growth of hi-tech, high value-added, high
output and low pollution enterprises.
The enterprises in the Hi-tech Zone must strictly observe the national environment
protection law, and discharged wastes shall meet the relative standards. Enterprises with
high pollution, high energy-consumption and low output will neither be recognized as hi-
tech enterprises nor obtain financial support .
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More Information: website:
http://www.china-cdht.com/en/
http://www.cdht.gov.cn/
Tel:86-28-85184155
Fax:86-28-85184066
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Note: @ 9/20/2004
Chengdu to Trade Hi-tech
Form:chengdu weekly author:
The 6th National Hi-tech Trade Fair will open next month in Shenzhen and both Sichuan
Province and the city of Chengdu are to send a delegation to participate in the grand
meeting. The trade fair consists of a hi-tech product show, a world science & tech forum,
a Super-Super theme show, and a job fair. Ten key projects from Chengdu will introduce
themselves to over 60 investing agencies in a Chengdu-featured show. One important
part of the trade fair is its job fair for returned overseas talents as about 1,000 returned
overseas personnel would be needed.
2004-9-20 09:20:28
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For Xian , ref software:
China: Software industry of strategic priority 2004-07-29 Chinese Vice-Premier Wu Yi
told the audience of her speech at the Ministerial Summit for International Cooperation
on Asian-Pacific Software and Service in Dalian that China would give priority to its
software industry of strategic significance.
Wu said in recent years the Chinese government has carried
out an array of policies to boost the development and
foreign trade of the software industry. More measures are
under consideration or will be issued soon on the research
and development of software technologies, property
transaction, investment and financing channels, prop-up of
giant pillar businesses, intellectual property rights Vice-Premier Wu Yi (centre)
protection (IPR) and anti-monopoly in the software sector. with Commerce Minister Bo
Xilai (right) and Liaoning
In fact, the Chinese government has mapped out six Governor Zhang Wenyue at
measures to take the precious business opportunities at the Ministerial Summit on
hand for the software industry, Wu said. International Co-operation
in Software and Information
Firstly, China's software industry will fulfill the agenda set Service in the Asia-Pacific
in the Guideline of Initiatives to Vitalize the Software Region in Dalian Tuesday,
Industry. In addition, a blueprint will be drafted for the July 27.
mid-and long term development of the sector.
Secondly, the strategy of spurring trade with science and technology will be implemented
further to facilitate the software export.
Thirdly, the commitment to foreign capital will be carried on. Foreign investment in
software industry is warmly welcomed.
Fourthly, businesses should be motivated to innovate technologies. This cannot be
achieved without talents. And great importance should be attached to intellectual property
rights protection.
Fifthly, software companies with core competitiveness will absorb more support to grow
up. More giants are expected in the industry.
Sixthly, reform and competition will press software businesses to improve their corporate
governance and systematic innovation.
Wu Yi especially stressed the importance of intellectual property rights protection in the
industry. She highlighted the fact that it is on the effective IPR that the enthusiasm of
software developers and the boom of the software industry depend.
Wu reiterated China's commitment to the exchanges and cooperation with the country's
Asian-Pacific partners on the information industry, especially the software segment.
China, as an integral part of the Asian-Pacific economy, will draw on the successful
experience of the nations in this region in software industry development, upgrade the
partnership and contribute to the economic vision of the whole Asian-Pacific region.
Present at the meeting are Chinese Minister of Commerce Bo Xilai, ministers from Japan,
South Korea, Malaysia and other countries. Representatives from the business circle are
also there from home and abroad.
（ Peopledaily）
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Going West: A Progress Report
by Catherine Gelb and Dennis Chen
For the last four years, the PRC government has been touting its Great Western
Development Strategy (GWDS), an effort to improve the living standards of the 367
million Chinese, more than one-quarter of China's population, who live far from
prosperous coastal China. The strategy has included massive government funding of new
infrastructure, efforts to improve the poor state of the region's environment,
encouragement of local industrial growth based on local resources, development of local
high-tech capabilities, and efforts to attract foreign investors.
The admittedly long-term strategy has nevertheless had decidedly mixed results so far
from the perspective of the foreign investor looking at the region as a potential
investment destination. Infrastructure construction has been significant and in many cases
has successfully modernized parts of the region, but transportation costs are still high and
transport networks are still unreliable. The environmental awareness of officials,
according to foreign investors based there, has improved, at least in major cities, but
varies from district to district. Industries based on the region's rich store of natural
resources are growing, as are sectors such as autos, which have a long history in the west,
but attention to foreign investors' needs is uneven. Universities in major western cities,
such as Xi'an, Shaanxi, and Chengdu, Sichuan, are established sources for engineering
talent across China, but companies are still struggling to find and keep capable, bilingual
staff. And although some high-profile, high-tech ventures were announced in 2003,
foreign investment flows into western regions are still weak.
The western development story
After four years of central government attention and funds, China's interior has made
some progress—but not enough to lure substantial foreign investment
Over the past two decades, China has gradually opened its economy to market-based
commerce and foreign investment. Most of these efforts have focused on eastern China,
particularly the coastal provinces. As a result, living standards of coastal residents have
risen. But in China's hinterland, poor infrastructure, a much larger rural population, and
firmly entrenched government interests meant that the central government's economic
liberalization policies did not extend to the residents of China's interior provinces. After
many years during which the interior fell further and further behind, the PRC government
realized that the imbalance in economic and social development posed a threat to the
health of the overall economy and stability of the country and decided it was time to
narrow the gap. The government's solution was the GWDS, covering one province-level
municipality and 11 provinces and autonomous regions: Chongqing, Gansu, Guangxi,
Guizhou, Inner Mongolia, Ningxia, Qinghai, Shaanxi, Sichuan, Tibet, Xinjiang, and
Yunnan.
The overarching goal of the GWDS is to eliminate poverty in the western provinces and
significantly reduce the development disparity between the east and the west by the
middle of this century. The Tenth Five-Year Plan (FYP, 2001-05) official goals are to
Invest heavily in infrastructure, from water resources, transportation, and energy
to telecom.
Reverse or at least halt environmental deterioration and prevent pollution in the
upper reaches of the Yangzi River and Three Gorges area, as well as along other
rivers located in the western provinces.
Improve the competitiveness of agricultural products, mineral resource projects,
tourism, and high-tech industries.
Raise education levels and improve the quality of human resources.
Make significant improvements in the infrastructure of provincial capitals and
urban facilities of smaller cities and towns.
Establish a modern corporate system in large and medium-sized state-owned
enterprises (SOEs) and significantly reduce the proportion of state capital in these
SOEs.
Significantly raise the western provinces' proportion of national foreign
investment and trade volumes.
Supply rural residents with adequate food and clothing, ensure that the living
standards of urban residents in the interior reach the "well off" (xiao kang) level,
and prevent the east-west income gap from widening further.
Separately, the government is maintaining the numerous incentive policies instituted in
2000 to attract investment to the interior. The government apparently hopes that foreign
investors will bring not only funds but also exposure to market-based behavior, exposure
that might help government officials in the region appreciate the benefits of market-
based, as opposed to government-promoted, economic growth.
The government apparently hopes that foreign investors will bring not only funds to
western China, but also exposure to market-based behavior.
First, the central government is increasing its budget for investment in key projects in the
interior, disbursing more loans from state policy banks, and encouraging lending from
international financial organizations and foreign governments for projects in western
China. The government will also encourage PRC commercial banks to provide more
loans (evaluated on their merits, the government is careful to note) for the construction of
infrastructure projects like railways, trunk roads, and energy production and transmission.
Second, the central government is keeping a variety of tax breaks in place. Foreign-
invested enterprises (FIEs) in sectors in which the government encourages foreign
investment (according to the Catalogue Guiding Foreign Investment in Industry) benefit
from a reduced income tax rate of 15 percent for the first three years after any existing
tax break ends. With approval from the provincial government, enterprises in ethnic
minority areas will be able to enjoy reduced income tax or be exempted altogether. New
enterprises in the transportation, electricity, postal service, and radio and television
sectors will be exempt from income tax for the first two years of operation and will pay
only half of the normal income tax rate for the following three years. An enterprise in the
western region that receives investment from an existing FIE will enjoy all preferential
policies for FIEs as long as the foreign investment stake in the new company is at least 25
percent. The government also issued the Catalogue of Encouraged Industries for Foreign
Investment in Middle and Western Regions of China, which lists encouraged industries in
20 interior provinces and cities. Any FIE in an industry described in the catalogue will be
exempt from tariffs and value-added taxes for equipment imported for its own use, as
long as the value of the imports remains below the FIE's total investment amount.
Local governments and development zones also offer their own incentives; these vary
from district to district and from project to project (see Western High-Tech Zones).
The strategy in numbers
According to China's National Bureau of Statistics, from 1999 to 2002, the growth rates
of GDP, per capita GDP, and fixed-asset investment in western China were slightly
higher than the national rates, indicating that the western provinces are catching up in
these areas, if slowly (see table, Western China in Numbers ). Between 1999 and 2002,
China's GDP and per capita GDP increased by about 28 and 25 percent respectively, but
the growth rates in the western regions are significantly higher than the national ones—
about 31 and 30 percent, respectively. Only three western provinces (Gansu, Guangxi,
and Yunnan) had growth rates of GDP and per capita GDP below the national growth
rate—the rest exceeded the national rate. Of course, these figures must be taken with a
grain of salt, as many economists have questioned the reliability of China's provincial
GDP figures.
Western China used $1.72 billion in FDI in 2003, a decline of 14 percent year on year;
this total FDI figure accounted for only 3 percent of total utilized FDI in China.
Even if the GDP and per capita GDP figures accurately reflect the massive infrastructure
development that occurred between 1999 and 2002 in western China, this momentum has
not translated into a narrowing of the wealth gap between east and west. Urban per capita
disposable income in the western region between 1999 and 2002 rose 26 percent, but this
figure still lagged behind the national average urban income growth figure of 32 percent.
(Rural incomes across the country grew only 12 percent during this period—one reason
for the central government's recent focus on rural areas.)
The foreign direct investment (FDI) figures reflect the difficulties facing central and
western local leaders in trying to convince foreign investors to take a chance on China's
hinterland. Despite the incentives in place to lure foreign investment west, the share of
China's total utilized FDI that flowed to western China actually declined in 2002, to 3.8
percent from 4.6 percent in 1999. This downward momentum continued in 2003.
According to recent statistics from China's Ministry of Commerce (MOFCOM), the
western regions used $1.72 billion in FDI in 2003, a decline of 14 percent year on year;
total FDI used by western regions accounted for only 3 percent of total utilized FDI in
China. Gansu, Ningxia, Qinghai, Tibet, and Xinjiang received the least FDI in China in
2003 (Tibet has attracted no FDI in the past several years).
In contrast, foreign investors poured funds into China's coastal areas. In 2003, the five
regions with the largest FDI inflows were Guangdong, Jiangsu, Shandong, Shanghai, and
Zhejiang, all located along China's eastern coast. The total FDI used by these five regions
accounted for nearly two-thirds of total utilized FDI in China last year.
A region in flux
To be sure, Chongqing and the western provinces and autonomous regions have some
comparative advantages over the coast: a ready supply of educated workers who can be
less expensive for some positions and proximity to abundant natural resources and
second-tier consumer markets. Companies that are able to take advantage of these
features and hold the attention of local officials can probably make a project work in
western China (see Questions for a Venture Capitalist in Western China).
Indeed FDI, though still a small contributor to overall growth in western China, is
increasingly visible in the major western cities, particularly in the high-tech and other
industrial development zones. BP plc, Ford Motor Co., and foreign auto parts makers like
Tenneco Automotive Inc. and Lear Corp. have set up in western China; Intel Corp. just
announced a $375 million chip testing and packaging facility in Chengdu; and Infineon
Technologies AG announced it was establishing an integrated circuit design center in
Xi'an's high-tech park. Liberty Mutual Insurance Group also just launched its operation in
Chongqing to sell property and casualty insurance. Many of these and other large-scale or
high-profile foreign investors that have set up in western China have received the special
treatment that comes with being a major local employer. Such strategic investments may
yet yield benefits for these companies beyond the goodwill they establish with leaders in
Beijing by setting up in a less desirable location.
But the GWDS has so far failed to make progress in many of the areas of greatest
importance to investors, both foreign and Chinese:
Transport infrastructure Despite advances in transport infrastructure, investors
in the west acknowledge that transportation still accounts for a larger share of
operating costs in the interior than it does on the coast, and that transport links
still tend to be unreliable (see China's Evolving Transportation Sector). This may
be less of a concern for manufacturers or service providers sourcing from, and
selling in, local western markets, but higher-end goods like autos still must travel
to the wealthier consumer markets on the coast. Transportation is also a problem
for manufacturers who aim to export their products or who must source inputs
from the coast or overseas.
Transportation still accounts for a larger share of operating costs in the interior
than it does on the coast, and transport links still tend to be unreliable.
Infrastructure improvements may accelerate in the medium term, though, as the
Three Gorges Dam becomes fully operational, making inland shipping more
efficient. New airports and eventually new air routes could benefit the western
region as well.
A thornier issue is the development of efficient multimodal shipping options for
inland-based companies. Multimodal transport requires cooperation among
ministries and local governments that tend to resist such cooperation. It also
requires consolidation of inefficient and protected industries like trucking, which
has thousands of tiny fleets scattered around the country.
The environment The central government's push to clean up the PRC
environment has been espoused by local officials in major western cities. But as
in eastern cities, the tendency is to relocate polluting industries outside of the city
center—and then forget about them. That is, enforcement of the government's
pollution laws runs headlong into local districts' desire for the tax revenue and
employment that large SOEs in steel, chemicals, and other polluting industries
offer. A foreign company that sets up a world-class facility with state-of-the-art
wastewater treatment facilities may find that its neighbors are politically
protected, polluting SOEs.
Government capabilities Government officials in the western regions are much
less familiar with the workings of a market economy than are their coastal
counterparts. The slow or even nonexistent change in the mindsets of many local
officials toward foreign investors may be the GWDS's most noticeable failure
thus far.
A recent Asian Development Bank report, PRC: Attracting FDI to Western China
notes, "Many local officials are not only not convinced of the benefits of FDI, but
are outright suspicious of it and view FDI as a zero-sum game—if the investor is
gaining something then China must be losing."
The central government acknowledged the problem as far back as the 1980s,
when it initiated a cadre-swap program in which some cadres from coastal areas
were sent to help the interior areas for a couple of years, and officials in the
western regions took jobs on the coast. The program has benefited some officials
in western China, but the small scale of the program has limited its effect. How to
train all the interior officials to be open-minded and forward-thinking is still a
challenge for the GWDS.
Some foreign companies in western China praise the local officials with whom
they deal as flexible and accommodating. Yet these companies tend to be the
larger investors with the most tax revenue and employment prospects to offer
local economies. Smaller foreign investors, or those without plans to expand their
investment anytime soon, may suffer from the short-term focus of local
government officials and their preoccupation with the largest taxpayers.
This short-sightedness has translated into a relatively weak set of investment
incentives on offer for foreign investors in western China beyond the national
incentives offered to all foreign investors. Land costs remain relatively high, for
example, and the focus is mainly on tax breaks rather than on providing services
that meet investors' needs. Officials in some of western China's high-tech
development zones and investment promotion bureaus appear to be showing
greater flexibility toward potential investors, though they are only just learning
about the full range of services they must offer investors to win their business.
The central government's plans to unify domestic and foreign corporate income
tax treatment, moreover, could spell the end of the practice of offering special tax
breaks to foreign investors. This makes the quality of government actions—from
streamlining approval procedures to adopting policies that promote competition—
all the more important.
Human resources In western China, most colleges and universities are located in
Sichuan and Shaanxi provinces, specifically in Chengdu and Xi'an. But many
graduates seek jobs in Beijing, Shanghai, and other big coastal cities. At the same
time, secondary education in the western regions has not yet adapted to meet the
market's demands for skilled workers. The result is that the qualified managers or
technicians willing to work in western China are in high demand among foreign
investors, and problems with retention can be just as intense as on the coast.
Training demands are also significant both for high- and low-skilled workers. And
human resource issues can take up much of a foreign investor's time. Thus,
though labor costs may be lower for some foreign firms in the interior, many
others find few labor cost savings overall.
For expatriates, a western China position can be a significant hardship,
particularly because of the lack of support services, such as international schools
and expatriate-friendly healthcare facilities. This is starting to change, however, in
the bigger western provincial capitals.
Slow and steady?
The GWDS is neither the first nor the last of the PRC government's efforts to direct
economic and commercial development. Past efforts—even the government's first foray
into "opening" China to commerce in 1980, the Shenzhen Special Economic Zone—have
met with similarly lukewarm initial responses from investors until commercial
circumstances made the investment location a compelling one or until the government
sweetened the incentive pot to make the new location more attractive.
The interior may yet, over the long term, come to benefit from the coast's success. For
one thing, production costs on the coast are starting to rise, driving many manufacturers
out of the major cities. Progress in infrastructure development, too, should improve
transport and communication links, power sources, and other key support networks. And
consumer markets in second-tier cities around China are becoming more appealing—and
more accessible—to foreign companies as World Trade Organization commitments are
phased in. In the short term, the income gap may remain wide, however. And the
development of "softer" skills among the employment pool and bureaucracy may take
time. The key may well be sustained government financial support for concrete efforts to
improve the interior's investment environment.
But the Chinese government is saddled with many other, arguably more urgent
priorities—reforming the financial sector and shoring up the nation's frail social safety
net are among the most pressing—and it is unclear whether the government's
commitment to western development will remain firm as reform of these and other weak
sections of the economy intensifies (though an early 2004 plan to train farmers for off-
farm jobs is encouraging).
Meanwhile, in late 2003, the Chinese government launched yet another regional
development effort, this one to "Revive the Northeast," China's rust belt, which is
suffering from severe unemployment and rising social discontent. Government efforts to
lure foreign investors to this troubled region may come at the expense of western China,
especially because of the essential role of government funding in these projects and
campaigns. The government's exhortations to investors to "Go West," then, if not backed
by more substantial incentives and measurable improvement in the commercial
environment, will not be enough to jumpstart western China's market for foreign goods
and services.
Western High-Tech Zones
One example of the central government's effort to develop the west—the establishment of
high-tech development zones in major cities—points out how far western officials have
come, but also how much farther they must travel to catch up to their counterparts on the
coast. The high-tech zones in Xi'an, Shaanxi, and Chengdu, Sichuan, for example, have
both recently won major investments from foreign semiconductor manufacturers, but
much of the foreign investment participation in these zones is in technology that is far
from cutting-edge. The size of most investments has been relatively modest. And the
number of foreign-invested enterprises (FIEs) within the zones remains far smaller than
the number of Chinese entities.
The Yangling State Demonstration Zone of Agricultural
High-Tech Industries
Yangling lies in the middle of the Guanzhong Plain in Shaanxi, 82 km from the
provincial capital of Xi'an. The high-tech zone was established in 1997 in part to take
advantage of the high concentration of academic resources in the area, including several
agricultural universities and research institutes, which together employ about 5,000
research staff.
Yangling's "mission," according to zone officials, is to put agriculture-related scientific
and technological resources to industrial use and to advance sustainable development of
arid and semi-arid areas to help restructure the local agricultural sector and raise farmers'
incomes. The overarching goal appears to be to create a self-sustaining local agricultural
economy in western China.
The zone may well be more interested in this mission than in fashioning itself as an ideal
location for foreign agriculture-related investment. Though officials are extremely
helpful, and the zone offers the increasingly ubiquitous "one-stop shop" for investors, the
large growth in output that the zone has achieved has been accomplished with little
foreign involvement. Examples of foreign participation in the zone include Israeli
technology at one Chinese-run firm that manufactures specialized sprinkler systems and
imported American seedlings cultivated by one zone enterprise that works to aid
reforestation efforts across China.
Yangling is busy experimenting with new ideas and business models. One of these, called
"Company + Experts + Farmers," has been used successfully by some local companies.
Under this model, a company engaged in the raising of livestock hires experts to provide
advice on scientific methods and also lends baby livestock to interested farmers to raise at
the farmers' own barns. The farmers must follow the experts' instructions on how to raise
the livestock. Once the livestock mature, the company takes them back and pays the
farmers for "babysitting." This model seems to keep everyone happy, as the company can
cut its overhead costs because it does not need to pay for any animal maintenance, the
farmers don't need to worry about whether they can afford to buy their own stock and
whether they can sell the adult livestock later for a good price, and the experts are paid
for their expertise.
Enterprise and zone performance
The zone is home to 600 enterprises with total registered capital of ¥3.5 billion
($423 million). Of these, 15 are FIEs.
Nineteen enterprises in the zone had registered capital of more than ¥50 million
($6.04 million) each in 2002; 18 enterprises had annual revenue of more than ¥10
million ($1.21 million).
The zone's output has increased by around 20 percent on average per year, from
¥309 million ($37.4 million) in 1997 to ¥805 million ($73.6 million) in 2002. By
the end of 2002, zone exports reached $15 million.
Selected preferential policies
Yangling offers the national-level incentives for high-tech zones as well as a number of
others, including
An enterprise development fund, which will be used to subsidize FIEs in the zone
for any income tax that exceeds 10 percent of their revenue after their first
profitable year.
A 20 percent business tax refund until 2005 for tourism and information
consulting enterprises in the zone that have paid more than ¥500,000 ($60,386) in
business tax a year.
Exemption from business tax for company or individual income obtained from
technology transfer, technology development, or services.
Exemption from land-use tax for land used for agriculture, forestry,
stockbreeding, and fishing.
Contact information
Ms. Tang Limei
Officer, Foreign Affairs Office
Yangling Agriculture Demonstration Zone
Tel: 86-29-8703-3981
Fax: 86-29-8703-6061
E-mail: l-tang@ylagri.gov.cn
Website: www.ylagri.gov.cn
Xi'an High-Tech Industry Development Zone
Xi'an High-Tech Industry Development Zone (XHIDZ) was founded in May 1988 and
was approved by the State Council in March 1991 as a national-level zone. XHIDZ is
located in the southern suburb of Xi'an, home to numerous academic and research
institutions. The zone, which has plans to double in size, is divided into sub-zones
focusing on aviation science and technology, telecom, software, and startups by returned
overseas Chinese, among others.
XHIDZ officials are keenly aware that they have tough competition for foreign
investment. During a recent visit, they were open about the fact that Intel Corp. had
chosen the Chengdu High-Tech Zone for its facility in western China. But they were
proud of the Infineon Technologies AG project they had won and asserted that it was a
better project, because it was bringing more sophisticated technology into China.
Some Chinese-run enterprises in the zone that have received foreign investment include
Kaimi Co., Ltd., an environmentally friendly detergent manufacturer that also produces
shower gels and other cosmetic soap products and that has started to export to Japan and
South Korea (also the source of some of Kaimi's initial investment). And Xi'an Kong
Hong Information Technology Ltd., an electronics enterprise that produces piezoelectric
ionizers for air purification and piezoelectric ceramic transformers for use in consumer
electronics, reports that it has received investment from the International Finance Corp.
and the Carlyle Group. The patented technology Kong Hong uses was developed at
Qinghua University in Beijing.
Zone performance
By the end of 2002, the zone had invested ¥14.75 billion ($1.78 billion) in
infrastructure.
In 2002, revenue rose by a quarter, to ¥48.1 billion ($5.8 billion) and GDP
reached ¥11.9 billion ($242 million), a 22.2 percent growth rate.
The zone was home to 4,991 enterprises in 2002, of which 541 were foreign-
invested.
The top five foreign investment sources were Hong Kong (35 percent), the United
States (24 percent), Taiwan (9 percent), the United Kingdom (9 percent), and
Japan (6 percent).
Leading foreign investors include Honeywell, NEC Corp., Fujitsu, Toyota Motor
Corp., Dakin, Brother Industries, Ltd., Royal Philips Electronics NV, Robert
Bosch GmbH, and Shangri-La Hotels and Resorts.
Infineon Technologies announced in 2003 that it would set up an integrated
circuit design center in the zone.
Selected preferential policies
In addition to central-government policies common to all high-tech zones, XHIDZ offers
a number of other incentives, including
An intellectual property rights fund to support patent, trademark, and copyright
registration both domestically and abroad.
A one-time award of ¥500,000 ($60,386) for the establishment of a research and
development center in the zone by one of the 500 largest enterprises in the world
or top 10 enterprises global industry leaders.
For investors in certain industries and at certain funding levels, preferential land
prices. (Investors that commit more than $100 million to the zone can obtain land
for free.)
Loan facilitation for small and medium-sized enterprises.
Contact Information
Mr. Lu Dongguo
Director, Investment Promotion Bureau
Xi'an High-Tech Industry Development Zone
Tel: 86-29-8833-3797
Fax: 86-29-8833-3606
Website: www.xdz.com.cn
Chengdu High-Tech Industry Development Zone
The Chengdu High-tech Industry Development Zone (CHIDZ) was established in 1991,
like its fellow zones, to take advantage of the local educational resources, in this case
those of Sichuan's capital. The zone received little support from the central government
until the launch of the Great Western Development Strategy (GWDS)—yet the central
government allowed all the national-level zones to offer the same incentives. The zone
then had to distinguish itself from its rivals around western China.
Covering 67 km2, the southern two-thirds of the zone consists of an R&D and business
area, while the western section (about 20 km2) is a manufacturing base, mainly for
information technology (IT) and modern Chinese pharmaceutical industries. Most of the
companies in CHIDZ are in the IT and biomedical sectors. The zone has an incubator
with 289 enterprises and "startup parks" for returned overseas Chinese and PhD holders.
By 2002, 313 Chinese returnees and doctorate holders had launched 100 startup
companies in the two parks. The first state-level export-processing zone in western China
was set up in CHIDZ in 2000.
When asked what challenges the zone enterprises faced, officials noted that transportation
infrastructure—distance from major markets—was a competitive disadvantage. But they
added that many companies in the zone benefit from its relatively transparent services.
Once the companies grow, they want to branch out, but often find it hard to get used to
the "conservative mentality" of officials outside the zone.
Interestingly, the zone officials tout the leanness of their management (like several of its
counterparts, CHIDZ provides a "one-stop shop" investors) and show flexibility that is
not considered common among western PRC government officials. But paradoxically,
they exhibit a minimal understanding of the kind of outreach necessary to lure foreign
companies west, even as they express interest in marketing themselves to foreign
investors.
Zone performance
CHIDZ had attracted 4,200 enterprises with more than $1.4 billion in investment
from foreign investors by the end of 2002, including Motorola Inc., Sumitomo
Corp., Mitsubishi Corp., Corning Inc., and Compagnie Financiere Alcatel.
At the end of 2002, the zone had 480 FIEs. In 2002 alone, 51 FIEs signed
contracts and 15 actually set up operations in the zone. In 2003, the zone won
Intel Corp.'s coveted $375 million semiconductor packaging and assembly
project, reportedly the largest foreign investment project in western China, over
Xi'an, Shenzhen, and Shanghai.
Before the GWDS, the zone took in $30 million in foreign direct investment
(FDI) per year. In the years since then, the zone has taken in $60 million—by
mid-2003, the zone had contracted $50 million in FDI.
In 2002, the zone's value-added industrial output reached ¥16.8 billion ($2.03
billion), up 25 percent, and total revenue was ¥47.2 billion ($5.7 billion), an
increase of 27 percent. CHIDZ was tenth in total output in 2002 out of 53 national
high-tech zones.
CHIDZ is the first high-tech zone in western China to have passed ISO 14001 and
UKAS certifications.
Preferential policies
Commercial banks in the zone are encouraged to give priority consideration to
enterprises in the zone when providing loans.
In 2003, the zone waived its application fee.
The zone will cover or subsidize land-use fees for foreign companies that invest
above certain levels and in certain sectors.
According to zone officials, in addition to the preferential policies posted on the
website, other preferential treatment can be discussed on a project-by-project
basis.
Contact information
Mr. Li Gang
Division Chief, Foreign Investment Promotion Bureau
Chengdu High-Tech Industry Development Zone
Tel: 86-28-8517-8684
Fax: 86-28-8517-6329
Web: www.cdht.gov.cn
— Dennis Chen and Catherine Gelb
888
West Development Academy of Sichuan University
Major work of the Academy
A research, consultation and
development institution by nature, the
West Development Academy of Sichuan
University is jointly established by the
Sichuan Provincial Government, the
Chengdu Municipal Government and
Sichuan University in January 2,000, in
answer to the central government’ s
strategy for the grand development of West China. Mr. Zhang Zhongwei,
governor of Sichuan, is the honorary chairman of the academy, while Mr.
Lu Tiecheng, deputy director of the Sichuan Provincial People’ s
Congress, president and Party secretary of Sichuan University is the
chairman. Other management personnel include Mr. Zhou Guangyan
(vice governor of Sichuan), director of the Academy Affairs Committee
and Mr. Du Kentang (professor of Sichuan University), director of the
Academic Committee.
The West Development Academy of Sichuan University is built on the
basis of relevant disciplines, specialties, colleges and research institutes,
and is staffed by expertise, scholars both in and outside of Sichuan and
leaders of related government organs. By way of coordination with
industrial, academic, research and government sectors, the Academy
conducts theoretical and application studies on the social and economic
development issues concerning the national strategy for the grand
development of West China, and provides thoughts and tactics as
grounds for decision-makings in promoting the overall development of
West China. It also offers consultation service to the enterprises and
individuals that will come and develop in the west. The Academy
implements an open and market-oriented operation mechanism so as to
realize an open-styled cooperation of theoretical studies with practical
applications, and of higher institutions with government organs and
enterprise groups. All these objectives are designed to make substantial
contributions to the economic construction, scientific and technological
progress, personnel training and social development in West China.
88
West Development Academy of Sichuan University
Major work of the Academy
includes: back
Publishing the Bulletin of West Development. They are mainly distributed to related
national ministries and commissions, leading newspapers and periodicals,
universities directly under the Education Ministry, provincial Party committees and
people‘ s governments of 10 western provinces, autonomous regions and
municipalities, Party committees, people‘ s governments, relevant departments and
bureaus of Sichuan and Chengdu, prefectures and cities in the province, as well as
the various colleges and divisions of Sichuan University.
Jointly setting up the West China Development Network. The net address is
www.westdevelopment.com, with columns of Forum for Experts at West
Development Academy of Sichuan University, Experts and Their Major Research
Fields, Bulletin of West Development, Latest Policy Orientation, Resources in West
China, Eco-Environment Protection and Construction, Customs of West China,
Attraction Investment in West China, news Hotline, etc.
Hosting the Forum on Developing West China. These may include (1) Students‘
Forum on Developing West China sponsored by related departments of Sichuan
University; (2) Senior Forum on Developing West China sponsored by related
enterprises; (3) Expert Forum on Developing West China sponsored by local
governments and enterprises.
Publishing Heading for the West series, the first of which include Grand
Development of West China-Opportunities and Challenges, Hot Land of West China,
On Grand Development of West China the Choice of Sichuan, Realizing New Leaps,
Studies on Creativity System of Sichuan, Sichuan in West Development, etc.
Organizing research projects, including
▲ Studies on regional development strategies;
▲ Studies on development of regional resources;
▲ Studies on development of regional industries;
▲ Studies on Revitalizing Sichuan by Science and Education;
▲ Studies on regional urbanization development;
▲ Studies on regional development in ethnic and poverty-stricken areas;
▲ Studies on regional social and economic development;
▲ Studies on regional sustainable development (or studies on regional eco-
environment protection and construction);
▲ Studies on strategies and tactics in West Development;
▲ Studies on West Development management;
▲ Studies on development of river valleys and hydraulic resource;
▲ Studies on disciplines related to West Development, such as in humanities and
social sciences, management science, natural science, engineering and
technology.
Conducting personnel training. Based on related disciplines of Sichuan University,
the Academy trains personnel closely related to the West Development according to
the requirements of local governments or enterprises.
Providing consultation services. The Academy is equipped with West
Development database. By joining forces of 11 disciplines including
humanities, sciences, engineering, economics, management and law, the
Academy provides local governments and enterprises with information
and consultation services covering development strategy, tactics, policies,
data, project feasibility appraisal, etc.
888
National, Ministerial and Provincial Key
or Specialized Laboratories and
Engineering Enters
National Key Laboratories
High-speed Hydraulics
Polymer Materials Engineering
National Specialized Laboratories
Bio-control for Grassland Rat and Inset Pest
Leather Chemistry and Engineering
Key Laboratories of The Ministry of Education
Commission
Leathering Chemistry and Engineering
Radiation Physics and Technology
Key Laboratories of The Ministry of
Health
Oral Biochemical Engineering
Ministerial and Provincial Key Laboratories
Biomechanics
Atomic and Molecular Engineering and High-pressure Synthesizing
Under High-Temperature
Filtering and Separating
Molecular Biology and Biological Engineering
Oral Biomedical Engineering
Nuclear and Photo Medicine
Inflammation and Immunological Molecular Biology
Targeted Medicine and Non-conventional Administering Systems
Forensic Medicine and Pathogenetics
Transplant Engineering and Transplant Immune
Histology of Disease-related Gene and Drug Gene
National Engineering Center
Biomedical Material Engineering
Summary
Biomechanics is a burgeoning cross-discipline. Biomechanics of Sichuan Univ. was
founded in 1979, and it was one of the most early founded biomechanical research and
teaching unit of China. It has enrolled graduate students from 1980 and was granted the
right to give doctor degree in 1986. In 1992, it became the primal province key discipline
of Sichuan province. The Biomechanical Engineering Laboratory, which was co-founded
by Chongqing Univ., was granted the Province Key Lab of Sichuan province in
1995.Leaded by the old famous biomechanics expert Kang Zhenhuang and the middle-
aged discipline-leader Prof. Chen Junkai, through more than twenty years development,
it has became the biomechanical research and high-level talent cultivation backbone unit
having some specials and high research level.
Major Research Fields
1.Biomechanics. Including Cardiovascular Fluid Dynamics; Circulatory System
Simulation; Heart Fluid Mechanics; Biomechanics of Bone, Soft Tissue and Tooth;
Kinematic Biomechanics; Friction between Blood and Artificial Organs. Recently,
research on biomechanics of cellular and molecular level has been done.
2.Development Artificial Organs and Medical Treatment Devices. Including Mechanical
and Biological Heart Valve; Artificial Lung.
3.Biomedical Information and Controlling. Including Testing and Evaluation of
Artificial Heart Valve(AHV); Medical Image Processing System.
Specials and Level
In recent years, the laboratory has assumed over 40 research projects and granted
over 2.5 million yuan, including the National Major Projects and the National Natural
Science Foundation Projects, and it got many advanced achievements, having
international level, on the fields of AHV fluid mechanics, designing and testing of new-
style AHV and simulation of circulatory system. Recently, some achievements including
“ Bifoliate-shaped Artificial Mechanical Heart Valve” has come into producing.
The laboratory has formed a research and teaching group having reasonable
structure, high level and good work style. It has cultivated 56 doctors and masters and
founded favorable teaching conditions and perfect teaching system. It has good teaching
and research conditions---having many advanced devices and science materials worthy
more than one million yuan.
The laboratory also takes great efforts on developing international cooperation and
exchanging, which creates good external environment for discipline development. In
recent years, seven world-famous biomechanical experts have been engaged as visiting
professors and the laboratory has sent over 20 researchers abroad for academic
exchanging and taken in over 30 foreign scholars.
Aims of the Laboratory
Taking full use of the advantages of having complete branches of biomedical
engineering and the combination of science and technology, we will develop the research
of multidiscipline and multilayer biomechanical frontal fields and engage actively in
research of biomechanics and medical engineering application, exerting important effect
for developing our country’s rising biomedical engineering industry. At the beginning of
21st century, the laboratory will become an important and top-ranking base for
developing and applying advanced biomechanical technologies and cultivating high-level
biomechanical talented.
Faculty
Supervisors for doctorates:
Kang Zhenhuang Biomechanics
Chen Junkai Biomechanics
Yuan Zhirun Biomedical information and controlling
Ning Jiaoxian Biomedical information and controlling
Professors:
Fan Yubo Biomechanics
Pei Jueming Artificial organs
Tan Xiaoping Artificial organs
Associate Professors:
Zuo Yuanwen Biomedical information and controlling
Chen Menshi Biomechanics
Docent:
Jiang Wentao Biomechanics
Engineer:
Luo Ke Biomechanics
International Cooperation & Communion
Homepage
Sichuan University has established friendly cooperative ties with over 100
universities and research institutes from over 30 countries and regions, they
include American Harvard University, Princeton University, Yale University,
Washington University, Landon University in England, University of Toronto in
Granada, etc.
Since China's reform and opening up, over1000 groups and 5000 people
have visited our university, including American vice president Mr. Bush, the
famous scientist Zhenning Yang, Zhengdao Li, etc. Since 1978, Sichuan
University invited over 2000 experts or scholars to the university to give lectures
and carry some co-research plans, some of the disciplines related to natural
science and engineering technique science, such as
mathematics、 physics、 chemistry、 macromolecule material、 electron
information, it related to literal human ores and social science too, such as
economics、 management、 demology、 law、 history、 archaeology、 religion、 Chi
nese traditional culture.
Interscholastic Cooperation & Communion
The Time
School Name Nation Underwriting
Agreement
University of Michigan America 1980
Griffith University Australia 1982
University of Washington America 1982
University of Nebraska America 1982
Harvard University America 1982
Ohio University America 1983
Washington State University America 1983
Southern Illinois University America 1983
University of Texas at Austin America 1983
Youk University Canada 1983
Colorado University America 1984
University of Washington America 1984
University of Michigan America 1984
Oakland University America 1984
Marylang University America 1984
Pacific Lutheran University America 1985
University of Denver America 1985
Michigan State University America 1985
Iowa State University America 1985
Eastern Michigan University America 1985
New York State University at Stony
America 1985
Brook
University of Michigan America 1985
The college of Saint Rose America 1985
State University of New York at
America 1986
Albany
Yamanashi University Japan 1986
Monmouth College America 1986
University of Dundee England 1986
University of Technology, Iraq Iraq 1986
University of Washington at Seattle America 1986
California State University ,Chico America 1987
South Dakota University America 1987
Sioux Falls College America 1987
Augustana College America 1987
Technical University of Nova, Scotia
Canada 1987
Halifax
University of Bremen Germany 1987
New South Wales University Australia 1987
La Trobe University Australia 1987
Melbourne University Australia 1987
University of Technology, Sydney Australia 1987
Monash University Australia 1987
Deakin University Australia 1987
Northern Michigan University America 1987
University of British Columbia Canada 1988
ENSAM,Paris France 1988
University of Strathclyde England 1989
Ukraine Donetsk University Ukraine 1989
Montpellier III University France 1991
University of Marylang America 1991
University of Tokushima Japan 1991
Quio University Japan 1991
Hiroshima Prefecture University Japan 1992
Caimichi University Japan 1992
Faculty of Chemical, Technical
Holland 1993
University of Twente
Institute Fur Wasserbau University
Germany 1994
Stuttgart
Naruto University of Education Japan 1995
The University of Akron America 1995
Texas Technology University America 1995
University of Tsukuba Japan 1996
WA University,St.Louis America 1996
University of Toledo America 1996
North Carolina S .,University America 1996
Queensland University of Technology Australia 1996
Montpellier III University France 1996
University of Laval Canada 1996
Faculty of English ,Kumamoto
Japan 1997
University
Faculty of Law, British Columbia
Canada 1997
University
Universite de Liege Belgium 1997
Incarnate Word University America 1997
TEL--AVIV University Israel 1997
The University Libre de Bruxelles Belgium 1997
Wsdeda University Japan 1998
Case Western Reserve University America 1998
University of New Orleans America 1998
Yale University America 1998
1998University of Tokushima Japan 1998
Naruto University of Education Japan 1998
Maurice Community College at New
America 1998
Jersey
Montpellier I University France 1998
Montpellier II University France 1998
Montpellier III University France 1998
Schools and departments (institute)
and disciplines
School of Philosophy and Fine Arts
Department of Philosophy
Department of Fine Arts
Institute of Religion
Philosophy, Religion, Administration Science, Art Designing, Drawing, Fine
Arts, Performance
School of Economics
Department of Economics
Department of International Trade and Finance
Department of Finance and Tax
Institute of South Asian Studies
European Studies Center
Economics, International Economy and Trade, Finance, National Economy
Management, Labor and Social Security, Land Resource Management
School of Law
Department of Law
Institute of Population
Law
School of Literature and Journalism
Department of Chinese Language and Literature
Department of Journalism
Institute of Chinese Language and Literature
Chinese Language and Literature, Journalism, Journalism of Broadcasting
and TV, Advertising, Editing and Publishing
School of Foreign Language and Literature
Department of Foreign Language and Literature
Department of College English
English, Russian, Japanese, French
School of History and Culture
Department of History
Department of Tourism
Institute of Classic Chinese Philology
Institute of History
Museum
History, Archaeology, Museology, Tourism Management
School of Mathematics
Department of Mathematics
Institute of Mathematics
Mathematics and Applied Mathematics, Information and Computational
Science, Statistics
School of Physics and Engineering
Department of Physics
Department of Applied Physics
Institute of Atomic and Molecular physics
Institute of Nuclear Science and Technology
Public Laboratory of Radiation Physics and Technology
Physics, Applied Physics, Microelectronics
School of Chemistry
Chemistry, Applied Chemistry
School of Life Sciences
Department of Biology
Department of Bioengineering
Institute of Biological Resources of Southwestern China State Specialized
Laboratory of Bio-control of Grassland Rats and Insect Pests
Biology, Bioengineering, Ecology
School of Electronics and Information Science
Department of Radio Electronics
Department of Photoelectronic Science and Technology
Electronics and Technology, Electronic Information Science and
Technology, Photoelectronic Science and Technology, Electronic
Information Engineering
School of Material Science and Engineering
Department of Materials Science
Department of Metallic Material and Engineering
Department of Inorganic and Nonmetallic Materials
Department of Polymer Materials
Institute of Polymer Materials
National Key Laboratory of Polymer Materials Engineering
Material Physics, Material Chemistry, Metallic Materials and Engineering
Inorganic Nonmetallic Materials, Polymer Materials and Engineering,
Biomedical Engineering
School of Manufacturing
Department of Mechanical Engineering
Department of Materials Forming and Control Engineering
Mechanical Designing and Manufacturing and Automation, Material
Forming and Control Engineering, Industrial Designing, Measurement and
Control Technology and Instruments
School of Electrical Engineering and Information Science
Department of Electrical Engineering
Department of Automation
Department of Communication Engineering
Electrical Engineering and Automation, Automation Communication
Engineering
School of Computer Science
Department of Computer Science and Engineering
Information Management Center
Computer Science and Technology
School of Architecture
Department of Architecture
Department of Civil Engineering and Engineering Mechanics
Architecture, Urban Planning, Civil Engineering, Water Supply and
Sewerage Work, Engineering Mechanics
School of Hydraulics and Electric Power
Department of Power Engineering
Institute of Hydraulic Engineering
National Key Laboratory of High-Speed Hydraulics
Water Conservancy and Hydro-power Engineering, Thermal Energy and
Power Engineering, Hydrology and Water Resources, Agriculture Water
Conserving Engineering
School of Environmental Science and Engineering
Department of Environmental Science
Department of Environmental Engineering
Institute of Environment Science and Engineering
Environmental Science, environment Engineering
School of Chemical Engineering
Department of Chemical Engineering
Department of Pharmaceutical Engineering
Department of Chemical Machinery and Control Engineering
Metallurgical Engineering, Chemical Engineering and Technology,
Chemical Equipment and Control Engineering, Biological Engineering,
Pharmaceutical Engineering
School of Light Industry and Foodstuff Engineering
Department of Leather Engineering
Department of Foodstuff Science and Engineering
National Specialized Laboratory of Leather Chemistry and Engineering
Research Center for Leather Engineering
Light Chemical Engineering, Food Science and Engineering
School of Textile and Clothing Engineering
Department of Textile and Clothing Engineering
Institute of Textile
Textile and Clothing Engineering, Textile Engineering
School of Administrative Science and Management Engineering
Department of Management Science and Engineering
Department of Information and Archive Management
Department of Industry and Commerce Administration
(Department of Accounting)
Administrative Science, Information Control, Industrial Engineering, Library
Science, Archival Science, Public Affairs Management, Industry and
Commerce Administration, Marketing, Accounting, Administration of
Human Resources, Financial Affairs Management
School of Basic Medical Science
Basic Medicine
School of Nursing
Nursing
School of Public Health
Preventive Medicine (health inspection), Preventive Medicine Public Affairs
Management (health insurance), Public Affairs Management (health
management)
School of Forensic Medicine
Forensic Medicine
School of Pharmacy
Pharacy
School of Stomatology
Stomatology
Department of Maternal and Child Health
Health Care of Women and Children
Department of Foreign Language
English for Science
Department of Humanities and Social Science
Public Affair Management(medico-enterprise administration)
Department of Physical Education
School of Adult Education
University of Engineering Science and Technology of China: Chengdu
UESTC started its international academic exchange as early as in 1956 on its foundation.
9 Russian experts respectively worked and guided the graduates for 4 years, and 87
experts came for a short-term visit. Meanwhile some promising teachers were sent to
Russian for their further training. Since 1978, following the open- up and reform policy
and the strategy of ― Education must meet the challenge of modernization, the world
advancement, and future.‖ UESTC has been involved in the interaction with overseas
universities and institutes and remarkable results have been achieved with the ever-
increasing international cooperation and exchange activities. Up to now,1000 academic
groups and 2000 scholars from 300 institutions, research organizations and famous
enterprises of over 30 foreign countries and regions. 41 scholars have been appointed
honorary professors of UESTC and 100 invited to work here as long- term experts and
teacher. 100 international students came to UESTC for their long-term or short-term
training. Besides UESTC has organized and hosted seven international conferences and
three seminars which has built UESTC a reputation in the world. On the other hand, 500
faculty members supported by the state subsidy and another 60 supported by the
scholarship from overseas institutions were sent abroad for their further training or
degree–programs study. Among them, 300 returned to UESTC and are now work on the
campus as the backbone in teaching and research. Besides,1000 faculty members went
abroad for short-term academic activities including participating conferences, doing
survey and co-research. Many years‘ international exchange has brought UESTC to the
world. In late 1980s, World Bank granted a loan of $ 1million with which a few well-
equipped labs and research centers were created on campus. In 1996, UESTC was
accepted as a member of World Association of Universities. So far UESTC has signed
cooperation agreements with over 40 well-known universities and institutes such as UC
Berkley, MIT, Stanford, Imperial College of Science, Medicine and Technology,
Moscow University, Munich University of Technology, Keio University, and Hong Kong
University. Benefited from the international exchange and cooperation, UESTC has
achieved breakthrough in the fields of Klystron, Plasma technology, Microwave,
electronic materials, computer and software. And more than 30 co-research projects have
been completed. Furthermore UESTC has built close ties with some famous enterprises
including IBM, Motorola, Intel, HP, TI, Epson, Samsung, and etc. And the donations and
financial aids offered by these companies have reached a total of over $4 million, which
greatly supported the teaching and research as well as the establishment of labs for co-
training programs.
ABOUT
Nestled in Chengdu, a time-honored city famous for its history,
culture and landscapes , University of Electronic Science and Technology
of China (UESTC) is reputed as " the cradle of the Chinese national
electronic industry ".
In 1956 the inception of Chengdu Institute of Radio Engineering
(CIRE), now UESTC, ushered in the first higher education institute of
electronic information of new china under premier Zhou Enlai's personal
disposal and care. CIRE was, and then created from the electronic
divisions of such well-established universities as Shanghai Jiaotong
University, Nanjing Institute of Technology and South China Institute of
Technology. As early as in the 1960's, it was ranked as one of the
nation's key higher education institutions. In 1997, UESTC was included
in the first group of universities in the "211 Project", a national
program of promoting China's higher education. In September 2001, UESTC
was selected as one of the Chinese universities that gain special
financial support from both the Ministry of Education and the local
Provincial Government （Project "985"）.
Today UESTC has developed into a multidisciplinary university
directly under the Ministry of Education, which has electronics
information science and technology as its nucleus, engineering as its
major field, and incorporates science, management and liberal arts.
UESTC now consists of 13 colleges including 29 departments, plus the
Department of Physical Education and Goldtel Software Engineering &
Microelectronics School. It offers 40 undergraduate programs, 44 master-
degree granting programs, and the MBA and Engineering master programs.
UESTC has 21 specialties authorized to confer PhD and 5 for post
doctorates.
UESTC is known as the only higher institute, which covers all the 6
state key disciplines in electronics and information science. UESTC is
authorized to offer 14 positions in 7 sisciplines involved in "Cheung
Kong Scholars Programme".
UESTC has a campus that occupies 58 hectares with a total floor
space of over 55,000 square meters. It possesses 25,000 sets of
equipment, a library of over one million volumes, and a modern stadium
with 3,000 seats. Its fixed assets reach 330 million RMB as well as the
modern public facilities. UESTC has more than 2，900 faculty members, of
whom 4 are academicians of CAS & CAE, 91 are PH.D tutors, 228 are full
professors and 569 are associate professors. UESTC has a current
enrollment of 26,000 students, including 5，000 PhD candidates and
postgraduates. Since its foundation in 1956, UESTC has trained over
60,000 graduates for the country.
In 2001, the campus took on a new look under the restructured and
strengthened UESTC leadership. Encouraged by the spirit of "strive for
the excellent; never settle for being adequate". The new leadership
started a new way to make UESTC prosperity. That is, to merge its
development with the local construction; to seek support with the best
service, to strive to advancement with contributions, and to develop
UESTC into the resources of Hi-tech, and the base of cultivating talents
with creativity. The leadership attached equal importance to its
strategic goal: that is, to turn UESTC into the first -rate university
leading the world in electronics and information science. The
implementation consists of two stages: by 2016, turning UESTC into one
of the best universities in China, and by 2036 one of the best
universities with the world reputation
Key labs
National Laboratories: National Communication Key Lab
Province and Ministry Laboratories:
1.Key Lab of New Technology Computer Applying
2.Key Lab for Computer Network and Communication
3.Ministry of Education Key Lab of Novel Transducers
4.Key Lab of Opto-Electronic Sensing and Information Processing
5.Key Lab of Opto-Electronic Information Engineering
6.Key Lab of Information Opto-Electronic Technology and Device
7.Key Lab of Display Science and Technology
8.Key Lab of Intelligent Mechanics and Systems Engineering of Ministry
9.Key Lab of Mechanics Control & Automation
10. Key Lab of the Ministry of Education in sensor technology field
11. Key Lab of Electronic System Engineering
12. Key Lab of Multimedia and HDTV Technology
13. Key Lab of Microwave Communication and Measurement Technology
888
The 2003 Chengdu International Building & Decoration Materials Expo
International Market Insight [IMI] ID: 116278
Regions: EAP;Asia;East Asia;ADB
Country: China
Divisions [Province]: Sichuan
Industry: Construction, Building & Heavy Equipment
by: Rose Nickel Report Date: 05/20/2003
approver: Helen Peterson Expires: 05/20/2004
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE
AND U.S. DEPARTMENT OF STATE, 2004. ALL RIGHTS RESERVED OUTSIDE
OF THE UNITED STATES.
This show is the largest sector-related show in Southwest China which may create
business opportunities for suppliers, manufacturers and exporters of building materials
and decoration products.
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE
AND THE U.S. DEPARTMENT OF STATE, 2003. ALL RIGHTS RESERVED
OUTSIDE OF THE UNITED STATES.
SUMMARY: Following the success of the first Chengdu International Construction &
Building Materials Expo in 2002, the 2003 Chengdu International Building &
Decoration Materials Expo will be held from August 8-11, 2003 in Chengdu. The
2002 show was the largest professional exhibition for the building materials industry in
Southwest China. The event, sponsored by the local Chengdu Government, was
designed as a trading and corporate platform to bring together domestic and international
suppliers, manufacturers and distributors in the building materials industries. END OF
SUMMARY.
Background
THE 2002 CHENGDU INTERNATIONAL CONSTRUCTION, BUILDING &
DECORATION MATERIALS EXPO
After over a year's preparation, the 2002 Chengdu International Construction, Building
& Decoration Materials Expo was held from November 12-15, 2002, at the California
International Convention Center, Chengdu, Sichuan, PR China. The event was co-
organized by the China Council for the Promotion of International Trade (CCPIT), the
Chengdu Municipal Government, CCPIT Chengdu and the Chengdu Jin Niu District
Government. It was the first large-scale international event for the construction and
building materials industries to be held in Chengdu. The 8000 square meter exhibition
hall hosted 150 domestic exhibitors and 32 overseas exhibitors. Among the exhibitors,
64% were manufacturers and 33% were agents and distributors. During the three-day
event, total show attendance was about 35,000 persons.
Overseas exhibitors included companies from the United States, Canada, Spain,
Australia, Korea and Malaysia. There were three US pavilions consisting of agencies
and associations from the States - US-China Build, the State of Pennsylvania and the
State of Illinois. As part of the show activities, the "American Housing Technology
Technical Seminar" was also held on November 14-15, hosted by the US-China Build
Program and the Ministry of Construction, Housing Industrialization Promotion Center.
According to the official show report, the total figure for contracts signed and under
discussion/negotiation reached RMB 170 million (USD 21 million).
THE 2003 INTERNATIONAL BUILDING & DECORATION MATERIALS
EXPO, AUGUST 8-11, 2003
Organizers
The 2003 or Second Chengdu International Building & Decoration Materials will be co-
organized by the Chengdu Municipal Government, CCPIT Chengdu, the Chengdu
Technology Inspection Bureau and the Chengdu Building Materials Association.
Subject
The 2003 Chengdu International Building & Decoration Expo is designed to showcase
brands of international building and decoration materials companies. The organizer
hopes to make this show a leading show in China in the building and decoration
materials fields.
Venue & Space
To be held at the California Convention Center, Chengdu, Sichuan, PR China
20,000 square meters with 600-800 exhibition booths
Promotional Opportunities
Seminars on international building and decoration materials
Site demonstrations for new building products and decoration technologies
Site visits to real estate projects and site discussions with real estate developers
Promotion sales
Contact Information
Rose Nickel
Commercial Representative
American Consulate General
No. 4 Lingshiguan Road
Chengdu, Sichuan, China 610041
Tel : 011-86-28-8558-3992 ext. 6720
Fax: 011-86-28-8558-9221
Email: Rose.Nickel@mail.doc.gov
The Commercial Section of the U.S. Consulate in Chengdu, part of the worldwide
network of the U.S. & Foreign Commercial Service, helps U.S. firms export their goods
and services to China. To accomplish this mission we conduct a number of services on
behalf of the U.S. Department of Commerce (USDOC), including our Gold Key Service,
which includes arranging meetings with potential Chinese distributors, agents, or joint
venture partners. For information on the Gold Key or other USDOC services, contact
the U.S.-based Export Assistance Center nearest you (call 1-800-USA-TRADE to find
the Center nearest you), or contact us at 86/ 28/558-3992 (ext. 6720), fax: 86/28/558-
9221. We are also on the web at www.usembassy-china.org.cn . The e-mail contact for
this event is Rose Nickel at Rose.Nickel@mail.doc.gov.
888
Chengdu New and Hi-tech lndustry Development Zone
It is a state levelouth development zone. It was founded in 1988 with the approval of
the State Council. It won the honored title of advanced high and new technology industry
development zone from the State Science and Technology Commission in August 1993
and went on to win the honored title of advanced development zone of Sichuan in 1994.
In 1998, it was rated by the Ministry of Science and Technology as an advanced
management unit of the Torch Program.
Located in the southern part of Chengdu City, it is a major area for eastward and
southward extension of the city. It covers 47 square kilometers, with a population of
200,000. It is only 6 kilometers from the Shuangliu International airport and 4.5
kilometers from the city proper. It now has a startup industrial park, Singapore Industrial
Park, the south ern railway station processing and trading zone, the Shiyang Industrial
Park and Straits Industrial Development Park. The development zone has invested more
than 2 billion yuan in capital construction. Such infrastructure facilities as power and
water supply, roads and telecommunications have taken shape. more than 60,000 square
meters of standard factory buildings, 12,000 kw thermal power station, 50,000-line
program controlled telephone exchange, primary and middle schools and roads. Have
been Put into use The zone has also started such services as banking, customs, bonded
warehouse, import and export corporations, certified public accountants offices, law,
offices, labor market, and social insurance.
The emphasis of development in the zone is on electronic information technology,
biomedicine,food processing, new materials and optic-mechanical-electronic technology,
nuclear technology application. The pillar industries featuring electronic information
technology, biomedicine and modern food processing have taken shape. There are a
number of large enterprises whose annual output value has exceeded 100 million yuan
and gross profits have exceeded 10 million yuan. They include Chengdu Cable Co. Ltd.,
Di Ao Pharmaceutical Co. of the Chinese Academy of Sciences, Enwei Group Co.
Wangwang Food Co. By the end of 1997, the zone had attracted 210 foreign-funded
projects, totaling nearly 500 million US dollars in investment. Some world-known
multinational corporations, such as
Seimens of Germany, Motorola of the United States,
Alcartel of France, Itochu, Mitsui and Fiji Heavy Industries of Japan and ALJ of Saudi
Arabia, have built factories. Now there are 235 high and new technology enterprises. 13
of them each has an annual output value of 100 million yuan. The GDP of the zone in
1997 was 2.88 billion yuan and the total income from technology, industry and trade was
8.8 billion yuan, the total industrial output value was 98.2 billion yuan and gross profit
was 985 million yuan.
It is an area in Chengdu that has the greatest vitality in economic development.
888
Mianyang High and New Technology Industry Development Zone
The Mianyang state class high and new technology industry development zone was
founded in 1992 with the approval of the State Council.
Over the past few years, the development zone concentrated efforts on converting
military enterprises into civilian production and on high and new technologies well
integrating the state strategy of converting military enterprises into civilian production,
the strategy of building high and new technology industries and the regional economic
development strategy, thus succeeding in building a high and new technology industry
with its own particular characteristics. Since 1992 when construction officially started,
the zone has accumulated a total fixed asset of 3.955 billion yuan, completed the
underground pipelines for water and power supply, rain water and sewage water
discharge, heat supply, natural gas supply, telecommunications and TV cables and
computer networks.
Its sound infrastructure facilities, beautiful environment, preferential investment
policies and highly efficient services and cheap labor and real estate cost have made the
zone very attractive to investors. A number of foreign companies, including Chia Tai of
Thailand, Creation of Hong Kong, Refined Chemical of Japan, Mitsui of Japan, New
Hope Group have entered the zone for development. By the end of 1997, there were 926
enterprises registered in the zone, including 44 foreign-funded enterprises, 316 industrial
projects. Projects under construction are 64, of which 59 started in 1997. 18 have been
completed. The fixed assets added in 1997 were 958 million yuan. The export earning
was 6.394 million US dollars. In 1997, the zone generated a total industrial output value
of 13.97 billion yuan (current price) and GDP of 4 billion yuan. The total income from
technology, industry and trade totaled 12.99 billion yuan.
The positioning of the development zone is to make the zone a main engine of
economic growth in Mianyang by the turn of the century and an important powerhouse of
growth for Sichuan and a model for development in the western part of the country
through unconventional development. The objectives of development are to bring the
output value of high and new technolog yenterprises up to 20 billion yuan,
that of 15 enterprises up to 100 million yuan and to
build a high and new technology industry base with a 1.5 million square meters of
electronic information technology industry as the pillar, conversion of military to civilian
production as the features and the integration of optical, mechanical and electronic
products, refined chemicals and new materials as the emphasis and to bring the total
income from technology, industry and trade up to 50 billion yuan by the end of this
century, up to 80 billion yuan by 2005 and 100 billion yuan by 2010.
888
Chengdu Economic and Technology Development Zone
It is a provincial level development zone, founded in July 1990.Located in the
Longquanyi district of Chengdu City,it is 13.6 kilometers from the city center,30
kilometers from Shuangliu International Airport and close to the Chengdu-Chongqing
express way.The climate is salubrious and the terrain is even. Water sources are free from
pollution.The standard of the air is close to the first class prescribed by the state.
The zone has invested 900 million yuan in building roads, water,power and heat supply
facilities,posts and telecommunications and other service facilities.It has built seven
roads,totaling 28 kilometers and a telecom building with a 150,000-line telephone
exchange and a modern postal building. It has opened IDD and DDD services. The
drinking water facilities completed have a daily supply capacity of 50,000 cubic meters.
It is now building a water diversion project with a daily supply capacity of 100,000 tons.
It has completed a 110kv and 220kv transformer stations,with a total capacity of 363,000
kva.The natural gas project with a daily supply of 400,000 cubic meters has been
completed and put into operation.The zone has attracted 360 projects,with a contractual
investment leaching 8 billion yuan. The total investment is close to 3 billion yuan. 162
projects have been put into operation.In 1997,the industrial output value reached 2
billion yuan. The total number of foreign-funded enterprises came to 54,with a
contractual investment close to 300 million US dollars. An industrial system has taken
shape,with electronics, machine-building,metallurgy, building materials and refined
chemicals playing the main role. In the main part of the zone, a new round of
infrastructure projects construction has started.
The new Yizhou and Longxiang roads will become the main frameworks of the eastward.
Development strategy of Chengdu city It enjoys all the preferential policies available in
the related regulations of the state, Sichuan province and Chengdu City.It will provide
high quality one-stop services to investors.
888
Chengdu Straints Science and
Technology Industry Development Park
The chengdu Straits Science and Technology Industry Development Park is located
inside Wenjiang County, a satellite town of Chengdu. Founded in 1992, it was official in
became part of the Chengdu High and New Technology Development Zone and a state
level industry development park in 1998 with the approval of the Ministry of Science and
Technology and the Taiwan Affairs Office of the State Council. According to the
regulations concerning state class development zone, enterprises in the zone may enjoy
all the more preferential policies with regard to land requisition and taxation. The
development zone covers 6 square kilometers. It is 23 kilometers from the Chengdu City
proper and 21 kilometers from the international airport.
International Industrial Zone, second class.The development park is designed
according to the international industrial zone, second class by the Taiwan Zhongxing
Engineering Consulting Co., the American Mckenrow Technology Consulting Co. and
the Chengdu Planning and Designing Institute. The infrastructure projects including
roads, greening, water, power and gas supply are built strictly according to the city
standards. It is a garden like industrial base with broad roads and beautiful factory
premises shaded by lush green trees.
Joint Operation.The development park is managed by the Management Committee of
the Park which is a commissioned office by the Chengdu City government. It will borrow
the experience in the management of the Hsinchu Science Park and Kaohsiung Export
Processing Zone in the management and gradually form a complete set of sound
management system through the joint participation of people on both sides of the Taiwan
Straits according to the principle of equality and consultation and making up for each
other's shortcomings. At the same time, the zone will have the participation in the
management Taiwan experts in the management of industrial zones and industrialists
entering the zone.
The Development Park mainly attracts foreign-funded
enterprises. By the end of 1997, the zone imported 30 projects, with a contractual
investment topping 300 million US dollars. There are now 5 enterprises that have
invested more than 10 million US dollars each. Domestic enterprises settling down in the
zone also feature big size and high contents of technology. An industrial system mainly
featuring food deep processing , light industry and electronics has taken shape.
Sichuan Provincial Investment Promotion Bureau
Sichuan Provincial Investment Promotion Bureau
Sichuan Provlnclal Investment Promotion Bureau Information & Center
No.30 Duyuan street.Chengdu.China
Tel： 86-28-86604459
Fax： 86-28-86606600
P.C.： 610016
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Chengdu High-Tech Zone
CHENGDU High and New Technology Industry Development Zone, the first such
entity in Sichuan, and among the first of its kind in China. was founded in March 1991 at
the approval of the State Council. As a joint endeavor of both Chengdu City and Sichuan
Province, the zone has rapidly developed over the past decade, establishing the
Enterprises Service Center, the High and New Technology Innovation Service Center, the
Returned Overseas Students' Enterprise Park, and the Doctors' Enterprise Park. It has also
formed an incubator conglomerate with certain universities and research institutes.
The administration of the zone interprets its responsibility of administration in terms of
service. It is the first zone to exercise a tri-system, composed of the primary
responsibility system (the first person consulted being held responsible), the per-son-in-
charge responsibility system, and the fault penalty system. These practices have resulted
in an efficient work style, and contributed greatly to the introduction of investments.
The Chengdu Doctors' Enterprise Park, the first of its kind in China, now accommodates
5 enterprises, whose founders include 70 doctorate holders, 20 postdoctoral researchers
and one academician. The Returned Overseas Students' Enterprise Park has 35
enterprises, and it recently successfully undertook the First National Annual Network
Meeting of the Returned Overseas Students' Enterprise Parks.
The Zone has accomplished a great deal in propelling the application and
commercialization of lab achievements through its incubator conglomerate, which
has attracted several incubation projects and appreciable capital. The 6, 200-square-meter
Incubation Building has housed over 200 projects, and the incubation success rate is
higher than 85 percent. One example is the Guoteng Communications Co., Ltd., which
obtained the China telecommunication s network access permit the same year it entered
the incubator. Within two months, its output value reached 26 million
yuan. It is the only Chinese enterprise that owns full intellectual property rights in the IC
public phone field. Today its output value stands at 500 million yuan.
The zone has nurtured a group of large, technology-oriented enterprises that hold full
intellectual property rights. Diao Pharmaceuticals Group, started 10 years ago with a loan
of 600,000 yuan, has ranked first year after successive year in the province, in terms of
growth rate and composite economic result. It took Chengdu Siemens Optical Cable Co.,
Ltd., only one year to complete its whole process of registration to full installation of
company facilities in the zone. It started to make profits the second year of its operation.
Siemens acknowledges this company as one of its most successful partnerships in China.
Today the zone has 306 foreign-invested enterprises, including 11 investors listed among
the world's top 500. They are mainly engaged in electronic information, bio-
pharmaceuticals and foodstuffs. The zone's electronic information enterprises have jolted
their counterparts in other parts of China with their astonishing rate of growth, making
Chengdu the second largest IT industry base in China, next only to Beijing.
In an effort to build itself into a strategic stronghold, Chengdu has set the IT industry as
its top priority. Consequently the development zone has become the main vehicle of this
priority. It puts emphasis on the development of electronic information, bio-
pharmaceuticals , export processing and other advanced industries.
According to its future development plan, the zone will incorporate three functional
areas: a high and new technology industrial park for IT, pharmaceutical and other high-
tech businesses, an education town for universities and schools of higher learning, and a
comprehensive service area which will make living and working in the zone more
convenient. The total planned area will cover 46.3 square kilometers.
888
ORGANS
The Department of Economic
General Office The Department General Affairs
Laws and Regulations
The Department of The Department of Industrial The Department of Enterprise
Economic Operations Policy Reform
Enterprise Instructing The Department of Enterprise The Department of Investment
Department Development and Planning
The Department of The Department of Foreign
The Department of War Industry
Technology Innovation Economic Coordination
The Department of Personnel
Resources Department CCP Committee
and Training
General Office
Be responsible for integrated coordination of the governmental affairs of
Economy Commission, and ensure the efficient operation; responsible for
monitoring proposal, overture, complaint letter and visit reception, the supervision
over integrated social security and target management; responsible for the
management and service as secretary, governmental information, file,
confidential, secrecy, security and financial affairs, etc.
The Department of Economic Laws and Regulations
To draft local laws and rules for the industrial economy management, coordinate
works related to the economic laws and rules undertook by the departments of the
Commission; responsible for organizing to monitor and check the implementation
of industrial economic laws, regulations and rules of the state, province and the
city, organize to carry out the system of responsibility of administration and law
executing, monitoring the work of administration and law executing of the
Commission; to make investigation on the important and key industrial economic
problems and put forward suggestions and solutions to the Commission and
Government; responsible for the draft of important documents, reports and official
speeches; to undertake the administrative reconsideration and deal with the
lawsuits; responsible for the supervision and administration of pawnbroking
The Department General Affairs
To forecast and analyze comprehensively the current operational situation of
macro economy, and put forward suggestions and solutions over key issues; work
out the draft of medium/long-term plan for the development of industry; to take
part in the study of the strategic target of national economy development of
Chengdu; be responsible for the organization of industrial economic information
and the coordination of economic propagation; be responsible for the supervision
and checking of target management of industrial economy; be responsible for the
guidance of the development of advertisement industry.
The Department of Economic Operations
To work out the near-term adjusting and controlling target of economic operation,
organize the instruction on the operation of industry and communication; to
organize the settlement of crucial problems arising from the operation of industry
and communication, when coordination of government is necessary; be
responsible for the coordination of united transportation related to railroad,
highway, aviation, etc., and the urgent dispatch of resources and crucial materials;
to analyze the market situation and trends comprehensively; to instruct the
enterprises of industry and communication on the production security.
The Department of Industrial Policy
To organize the formulation of the specific implementing solutions in Chengdu
for national industrial policies, supervise and inspect their enforcement; to
organize the coordination and implementation of relative economic policies
(mainly the policies of industrial organization and technology), jointly with other
organizations concerned; to coordinate the solution of key problems arising from
the operation of industry and communication; be responsible for the organizing of
implementation of regional industrial structure adjustment.
The Department of Enterprise Reform
To study the draft of the policy of state-owned enterprises‘ reform and their
system reform design; instruct the coordination of the strategic reconstruction of
state-owned industrial enterprises, organize to implement the bankruptcy and
annexation as well as establishing modern enterprise system in state-owned
industrial enterprises; undertake the day-to-day work of the office of stock-share
reconstruction leading team.
Enterprise Instructing Department
To study and work out the implementing of macro-management on various kind
of ownerships of industrial the enterprises in Chengdu, normalize the conduct of
enterprise; to instruct the management of state-owned enterprise and monitor the
operating quality of the state-owned capital in enterprise; to instruct the
coordination of turning around losses and corporate burden relief of state-owned
industrial enterprise; to study the draft of functional separation measures of social
service organizations (as school, hospital, logistics, etc) from the enterprises, and
to coordinate the solution of problems arising from the implementation; to execute
the standard of enterprise-scale measuring and be responsible for the guide of the
implementation and the submitting of report; to coordinate the re-employment
affairs cooperatively with the relative departments.
The Department of Enterprise Development
To study and work out suggestions of the reconstruction of enterprises into
shareholding system, organize the coordination and guide to the reconstruction of
enterprises; be responsible for the appraising and transferring of the report of
company-system reconstruction of enterprise and initiative of stockholding
company; study to work out the development of large-sized enterprises and
enterprise groups, draft the policy/measure which promotes the direct financing in
the capital market, and the policy/measure of reform, development and
standardizing operation of listed companies in Chengdu; to instruct the listed
company in the standardizing operation, and study to work out the planning
suggestions on enterprise reconstruction and to be listed in the stock market and
the capital reorganization of listed company
The Department of Investment and Planning
To instruct the draft of industry development plans of the industrial associations
(companies) of industry and communication, to study the draft and organize the
implementation of the production power layout of key industries and structural
adjusting plan of major products; to organize the working out the medium/long-
term plan and yearly plan for the industries‘ technological reconstruction of the
whole city; to manage and coordinate the enterprises in technological
reconstruction, technological introduction, and foreign capital utilization; to
publish the guiding directories of project investment on a periodical bases; to
supervise the spending direction of the funds raised from stock offering and
rationing of the listed company; to work out the policy of encouraging the
enterprises on technological reconstruction; be responsible for the qualification of
the bid invitation agency involving in the tendering of technological
reconstruction project, and exercise the administrative supervision on the
tendering of technological reconstruction project; be responsible for the
supervision on the key technological reconstruction projects of national,
provincial or municipal level.
The Department of Technology Innovation
To study the draft of the policies and measures on encouraging the enterprise in
technological innovation; instruct the coordination of the implementation of the
projects relative to the state/provincial key technical innovation and new product
trial-producing; draft out and make known, jointly with the relative departments,
the financial plan for enterprises‘ technological innovation; to work out and
supervise the implementation of the plan on the use of ―three expenditures‖ on
technological innovation; to instruct and promote the establishing of the
enterprises‘ technology innovation system and the combination of
production/study/research; to organize the coordination of the implementation of
the industrialization of new high-tech and the reconstruction of traditional
industry by using the new high-tech; to organize the enterprises to have
technological communication and cooperation with enterprises and institutions at
home and abroad; to organize the coordination of the technological introducing
and digesting of key technology and technological equipment.
The Department of Foreign Economic Coordination
To organize the coordination of foreign investment inviting of domestic
enterprises and their investment in foreign market; to check the projects of using
foreign capitals and the projects of assembling and processing of materials
supplied by foreign clients; to check and report the import and export plans for
staple and key industrial products and raw materials critical to the nation‘s
livelihood; to take part in the settlement of the critical problems arising from the
implementation of foreign economic and trade affairs; and to approve the on-
business traveling abroad for the technological reconstruction, technological
introduction, and the foreign-capital utilization projects of the production-type
enterprises in Chengdu.
The Department of War Industry
Be responsible for the coordination of settling the problems arising from the
research, production and operation of the Central Governmental units in Chengdu,
ensure the proper local conditions and services for the research and production of
war industrial products; to promote the cooperation and the setting-up of joint-
ventures between the Central Governmental units in Chengdu and the enterprises
both at home and abroad, speed up the development of civil-oriented products and
the integration with local economy; to put forward instruction, help and service
that is necessary to the Central Governmental units in Chengdu for their reform; to
supervise and urge the Central Governmental units in Chengdu to fulfill the
objective tasks as production security etc., assigned by Chengdu Municipal
Government; be responsible for the liaison with Central Governmental units in
Chengdu.
Resources Department
To organize the draft of the industry layout of the Chengdu‘s power industry
(including hydro power) and exercise the industrial administration; to study the
draft of integrated controlling target for the near-term power economy operation,
to coordinate the settlement of the key problems arising from the operation of
electric power transmission-line system and the power economy; be responsible
for coordinating the energies and resources of electricity, natural gas, steam, and
so on; to cultivate, normalize, monitor the power market, work out suggestion on
the price policy of power and heat, exercise the administration of the partition of
power-supply areas according to the relative stipulations, be responsible for the
execution and supervision of the power-related administration; to guide the
electrization affairs in rural areas; organize the draft of policy/measure for the
comprehensive utilization of resources and new resources development in
Chengdu; to promote the development and popularization of new product and
technology, in light of energy conservation , as well as the reconstruction of the
relative equipment; to organize the coordination of industrial environment
protection and work out the policies and development plans of environmental
protection industry, to cultivate and standardize the market of environmental
protection industry; be responsible for the coordination of wasted automobile
reclamation (including the breaking-up); to organize the coordination of the
industrialization of automobile using dual-fuel, the compressed natural gas and
gasoline.
The Department of Personnel and Training
Be responsible for the personnel management, organization layout, labor and
payment, political checkup of going abroad, and the appraisement and
engagement of technical/professional titles of the departments and organizations
under the Commission; to instruct the training of managers from industrial
enterprises in Chengdu.
CCP Committee
Be responsible for the relationship between the Commission and the Party, and the
Party affairs of the enterprises and organizations under Chengdu Economy
Commission; responsible for the affairs of the Trade Union, Communist Youth
League, Women‘s Union, etc., of the Commission and its direct departments and
organizations.
Architectural article for China:
LESLIE CHANG
The Wall Street Journal
Four years ago, the New York-based architecture firm of Skidmore, Owings & Merrill completed
its first building in China, the metal-and-glass-latticed, 88-story Jin Mao Tower. Today, the firm
has more than 30 projects in China, making that country Skidmore's No. 2 market after the U.S.
in terms of number of projects.
For the world's top architects, China has gone in short order from a novelty market to an
indispensable one. Firms are opening China offices, scooping up projects, and discovering an
intoxicating combination of big buildings, bold blueprints, and a pace of construction unseen in
decades in the developed cities of the West.
"There's no place that has the energy, the vitality, the amount of work," says Gregory Clement, a
principal at New York firm Kohn Pedersen Fox Associates, on his third trip to China in two
months. "It's hard to imagine any place in the world that is as compelling."
Yet as many design firms have realized, working in this nation comes with major caveats. As in
other industries, from car-making to retail, regulations force foreign architects into partnership
with locals, a setup that can make it difficult for a foreign firm to ensure the quality of the buildings
that bear its name. In addition, local developers aren't accustomed to paying on the same
schedule as Western clients, which makes it harder to keep the office humming during long-term
projects. In fact, the fear of not being paid at all -- as sometimes happens -- has kept some elite
firms away from China altogether.
"Getting paid in China has always been a major challenge," says Jerry Zhao, senior associate
and China director of Sasaki Associates. "It is an issue. We have to be constantly on alert. We've
heard a lot of horror stories."
Foreign architects first tested the mainland Chinese market in the early 1990s. Their presence
has helped to remake the local landscape, adding trophy towers to the mix of generic low rises
and office buildings. The Shanghai skyline has buildings that curve with undulating surfaces,
buildings with huge geometric cutouts, and buildings topped by what look like flying saucers
speared by giant toothpicks.
But a flood of new projects is drawing a new wave of design talent, with many firms further
motivated by languid economies back home. To host the Olympic Games in 2008, Beijing will
require a new battery of stadiums, parks, hotels and office buildings. Other social forces are
sparking huge real-estate investments elsewhere. Satellite towns on the edges of many Chinese
cities are being created from scratch to house the millions moving into cities for work, and the
millions displaced from urban centers because of development.
A 600 million euro ($738.7 million), 5.9 million-square-foot office building now being built for
China Central Television is among the largest buildings under construction anywhere in the world.
Dutch architect Rem Koolhaas's firm, OMA Office for Metropolitan Architecture, is a co-designer
of the television tower, a trapezoidal loop with a large window cut out of the middle. Last month,
two partners and the firm of British architect Lord Norman Foster won the bidding to build a $2
billion terminal at Beijing's airport that will more than double the airport's capacity.
The pioneering firms that arrived in China a decade ago learned important lessons about how to
operate. "In the 1990s, we had very mixed results," says Bruce S. Fowle, a principal of Fox &
Fowle, a New York firm. In one case, for example, the firm isn't associating its name with a
Shanghai office tower it designed because of the changes made by local partners. "They took off
floors and changed materials. All the things we thought made the project great they took away,"
he says.
Fox & Fowle is more cautious now. But it's also optimistic, and it sees China as an important
market that offsets slowdowns back home. It has two projects in development in Beijing: the Ditan
Sports Tower and an office tower near the central business district.
Chinese regulations allow foreign firms to design buildings conceptually and provide detailed
plans of how the building will be put together. But only designated state-owned design institutes
can draft and sign construction drawings. Chinese firms also oversee the actual building.
The requirement to work with the design institutes is part of the reason that fees in China can be
much lower than elsewhere -- half or less what they would receive in the U.S., according to
several architects.
HLW, an architectural firm with headquarters in New York, has seen the good and the bad. The
company, which got its license to operate as a full design consultancy two years ago, employs
about 45 people in its Shanghai office and has done about 200 projects in China. "The pace of
work is so much more rapid here," says Christopher Choa, a partner at HLW Shanghai Ltd. "You
have many more chances to develop your ideas."
Prominently displayed on a wall near the reception area is a drawing of a retail and office
complex in Hangzhou with dramatic cutouts and purple lighting. The project has since been
completed, but it was a commercial nightmare. "They were one of the clients who for some
reason were not happy with the work," says Mr. Choa, who waves his hand in disgust when
asked how much his firm is owed on the project. Zhang Yang, standing deputy manager of
Zhejiang Phoenix City Real Estate Development Co., says the firm didn't make full payment to
HLW because HLW's design plan didn't adhere to the client's own design plan and requests.
Foreign firms say they have adopted measures to protect themselves from such costly mistakes.
When RTKL, a Baltimore-based architecture and engineering firm, first arrived in the early 1990s,
it sent monthly bills to a client, not realizing that Chinese developers prefer to pay only upon
completion of project elements. Now the firm incorporates payment schedules in its contracts
based on when certain definable tasks are completed. One of RTKL's projects is the Chinese
Museum of Film in Beijing.
Firms have also become pickier about clients. "We have learned to say no," says HLW's Mr.
Choa. Still others shy away from China. James S. Polshek, founder of Polshek Partnership
Architects in New York, was one of the first American architects after Frank Lloyd Wright to work
in Japan 40 years ago, but China isn't a priority right now. "We've never rushed to the hot
market," he says, recalling the disastrous forays many architects made in the Middle East in the
1970s, a defining time for many of the architects who head large firms today.
Cesar Pelli, whose skyscrapers dot the world, is cautious about China. His firm has one project in
Shanghai for a Hong Kong developer he has worked with in the past. Otherwise, he has yet to do
a building for a mainland client. "We'd like to work in China for the right projects and the right
clients," he says.
Chinese architects have mixed feelings about the invasion of foreign designers. They
acknowledge they have a lot to learn from their Western counterparts, but they also resent seeing
foreigners snap up most of the high-profile projects.
"A lot of the projects invite only foreign firms to bid, or require us to work with foreign firms" in
order to bid, says Zhu Xiaodi, president of the Beijing Institute of Architectural Design. The firm he
leads was founded in 1949, the year the Communist Party came to power. Many of its early
buildings were symbols of Communist rule, like the Great Hall of the People and the National
Museum of China, both on Tiananmen Square.
The institute has a staff of 400 architects and 500 engineers, vast by U.S. or European standards.
"It is as if we in China have nothing to offer," says Mr. Zhu.
A growing number of critics -- both city planners and Chinese architects -- worry that the craze for
big-name buildings is spawning gaggles of skyscrapers with no connection to the surrounding
landscape. "A lot of developers just decided, 'I will put up a building here,' and the (local)
government was happy to have the investment," says Wu Jiang, deputy director of the Shanghai
Urban Planning Bureau.
For these reasons, says HLW's Mr. Choa, working in China is in some sense a Faustian bargain.
"When you have gargantuan projects created by administrative fiat, it looks spectacular in a
photograph, but that's not the recipe for a livable city," he says. "Deep down, I believe that great
cities shouldn't be designed all at once."
Star architects eye Beijing skyline
Tuesday, December 2, 2003 Posted: 5:19 AM EST (1019 GMT)
BEIJING, China (Reuters) -- The last time Beijing
stumped the world with mind-blowing architecture, a
Ming dynasty emperor had ordered up the Forbidden
City in the shadows of the Great Wall.
Enter Swiss architects Jacques Herzog and Pierre de
Meuron, who are among the latest foreign hotshots
the city has enlisted in pursuit of modern wonders as
bold and mystifying.
Come the 2008 Olympics, their National Stadium Beijing's skyline battles
will allow the hosts to cut a surreal, progressive traditional architecture and
figure. The veiny flesh of their steel-roped creation is modern highrises.
its very bones.
Story Tools
Beijingers know the space-age project by a more
down-home nickname -- the "bird's nest."
"I think the Chinese people understand that it's a YOUR E-MAIL ALERTS
strength to open themselves and to ask people from Follow the news that matters to
the outside to work," de Meuron told Reuters on a you. Create your own alert to
recent visit to the capital. be notified on topics you're
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The city, built on a flat ancient grid, is today a crazy
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Jumbled by seismic historical shifts and diced up by Manage alerts | What is this?
construction, the urban jigsaw sketches a century of change -- from exclusive courtyards
to crumbling labyrinths, proletarian tenements to commercial hunks of kitsch.
Beside the bird's nest, Frenchman Paul Andreu's contentious National Theatre, or the
"duck egg," as some residents dubbed it, is due to open diagonally opposite from the
Forbidden City next year.
Dutch iconoclast Rem Koolhaas's state television headquarters, which some have labelled
a "twisted doughnut," will loom over the city's corporate heart by 2007.
In November, Beijing pronounced Briton Norman Foster the winner of a contest to
design a new $2 billion airport terminal.
So much for monuments made in the image of emperors, cadres and technocrats. The
totems of the next age appear to be zany engineering experiments picked by semi-
democratic juries.
"They see this as a sign of strength," said de Meuron.
By 2008, only two hosts of the Summer Olympics other than Beijing will have opened
the Games in a venue designed by a foreigner. French architect Roger Taillibert crafted
the stadium in Montreal for the 1976 Olympics. Spain's Santiago Calatrava is renovating
the main stage for the 2004 event in Athens.
A truly strong nation, some Chinese designers contend, would not import its Olympic
stage.
Critics of the big-name commissions have preferred blueprints more clearly in tune with
the classic surroundings, and budgets more befitting a developing country.
By depending on the world's wizards to perform their magic, others fear, China is failing
to confront its own aesthetic anxieties vis-a-vis the West.
An underlying problem is that the capital, like most Chinese cities, is still fumbling for its
own contemporary look.
Domestic architects are pinched by a government beautification drive and margin-
obsessed developers.
They also had to throw off the yoke of long-dominant Beaux-Arts and Soviet classicist
schools, said architect Zhang Yonghe, a Peking University professor.
"It's not about capability, but rather I don't think Chinese architects are ready to take on
some of the tough agendas of contemporary architecture, from the very social aspects to
some technological issues," he said.
The pace of change and a deluge of outside influences compounds their sense of cultural
schizophrenia. "Nobody knows what's really contemporary Chinese architecture," said
Zhang.
That is why some architects view the stadium project as another lost opportunity.
"This is the national stadium, not just any stadium," said Tsinghua University's Wu
Yaodong. "It's an international stage. It would have been a great chance for a Chinese
artist."
Instead the spotlight is on Herzog and de Meuron. Their credits include London's Tate
Modern gallery and an $80 million Prada store opened this year in Tokyo.
But their brainchild has yet to set off the vicious backlash predecessors Andreu, and to a
lesser extent Koolhaas, endured.
It is not your typical bowl of a ballpark. It looks more like a ball of ribbon or a caged
lantern, with a roll-on roof for rainy days.
Translucent cushioning lines parts of the edifice, the rest breathes naturally. The
structure, grey outside and red inside, borrows the archetypal color scheme of a Beijing
courtyard. The prescribed budget, state media say, is $500 million.
Detractors pointed out similarities between the bird's nest and the pillowed lattice-work
the architects are building in Munich for the 2006 World Cup.
But an international jury chose it overwhelmingly over finalists from China and Japan.
"Chinese very much think in images and compare buildings to animals and to landscape
and to other forms of nature," Jacques Herzog told Reuters by e-mail. "Fortunately, the
Chinese identified some of that in our design."
The pick was no accident, said Zhang and others. Just as Chinese jet setters yearn to drive
BMWs and their wives covet Louis Vuitton bags, a new generation of city planners have
stacked juries in hopes of landing brand names.
Ultimately, the Communist Party elite reserves the right to veto.
"From the leadership point of view, it shows how much they want to show their
openness," said Wu, a dissenting member of the Koolhaas panel. "So I'm a little worried."
Team of architects help design sustainable
buildings in China
Richard St. Clair, Center for Environmental Initiatives
April 4, 2001
Leon R. Glicksman, professor of architecture and mechanical engineering at MIT, is the
leader of a four-year project funded bythe Alliance for Global Sustainability (AGS) to
assist Chinese architects and developers in designing more energy-efficient buildings.
Begun in 1998, the project emphasizes development of simple, generic solutions that are
appropriate to the local area, are very cost-effective and will be accepted by the local
people. Buildings being designed in this project could reduce summer energy
consumption by as much as 50 percent in China.
Current estimates say that by 2015, the public and private sectors of China will generate
more CO2 emissions than the United States, primarily from energy consumption.
Buildings are projected to account for about one-third of total Chinese energy
consumption. The Chinese are currently building about 10 million new residential units
per year (the United States builds about 1 million), and many Chinese developers are
interested in "sustainable" buildings -- that is, buildings requiring lower energy
consumption, fewer energy-intensive materials and nondestructive construction
techniques.
"If you're really interested in reducing CO2 around the world, doing more work in the
developing world is going to have a much larger impact than all of the things people may
do in the Western world," Professor Glicksman said.
In addition to Professor Glicksman, the research team at MIT includes Associate
Professors Qingyang Chen, Leslie K. Norford and Andrew M. Scott and Assistant
Professor John Fernandez, all of architecture.
The team is helping create large-scale demonstration residential buildings in China
combining innovative design and technology. Several prototype designs of energy-
efficient systems and buildings are being developed for Shenzhen, Beijing and Shanghai.
Sponsored by the Beijing city government in conjunction with a semiprivate developer,
the larger of the two projects near Beijing is targeted to house 250,000 people.
The project, initiated with support from the Kann Rasmussen Venture Fund and the AGS,
is a cooperative initiative involving Tsinghua University in Beijing, Tongji University in
Shanghai, the University of Tokyo and the Swiss Federal Institutes of Technology,
together with several Chinese developers. The latter two universities and MIT comprise
the AGS partner institutions.
The groups have scheduled workshops for 2001 in Beijing and Shenzhen, where
researchers will teach Chinese participants about available and relevant tools for
sustainable buildings. The researchers are also developing a design manual for future
developers to help the Chinese designers and builders become self-sufficient.
The researchers are aiming at not only the technical side of sustainability, such as energy
efficiency and indoor air quality, but also sustainable design in the architectural sense, by
developing a feeling of community with elements such as streetlight plans, shops and
children's play areas.
The AGS is doing the conceptual design, while the detailed design is being done by the
Tsinghua University team, which is familiar with the local building codes.
"It quickly became evident that what we wanted to do was good design -- simple
technology to start out with, like shading and ventilation -- before embarking on more
complicated features. This included finding a way to insulate the walls. Some buildings
in Beijing have little if any insulation, even though it's very cold at times," said Professor
Glicksman.
MANY INVOLVED
The project is multidisciplinary, involving architectural designers and technologists,
engineers, faculty, researchers and students. "It's been a very good educational vehicle,"
he said. "We have conducted workshops where we've brought in engineering and
technology students who will become professional architects and designers. Now we're
moving toward the implementation phase."
The researchers have spent much time in China, working with local people to come up
with solutions. "We're working directly with developers who are actually building
projects," said Professor Glicksman. "It's not a theoretical kind of exercise."
Other MIT projects in China have the same pragmatic philosophy, including a project on
reducing emissions from coal-fired boilers in small- and medium-sized industry
(Associate Professor Kenneth Oye of political science and Professor Emeritus János Beér
of chemical engineering), a coke-making project (Professor Karen Polenske of urban
studies and planning), and an electric power systems project (research engineer Stephen
Connors of the Energy Laboratory).
In September 2001, Chinese research collaborators will analyze the performance of the
Shenzhen project. After construction is complete, MIT will do an assessment for any
flaws in materials, construction or building operations.
For more information, see the MIT web site on sustainable urban housing in China (a
Chinese version will be available in June 2001), or contact the China Housing Project.
A version of this article appeared in the April 4, 2001 issue of MIT Tech Talk (Volume
45, Number 26).
Soaring Ambitions
The world's most visionary architects are rebuilding
China. Inside the aesthetic revolution
By Susan Jakes Beijing
MARK LEONG/REDUX FOR
TIME
STREET SMART:
Designers Ole Scheeren and
Rem Koolhaas have a vision
for Beijing
Posted Monday, April 26, 2004; 21:00 HKT
Nothing less than the most novel building in Beijing would do. Zhang Yongduo, an
entrepreneur from the coastal Chinese province of Shandong, had made a fortune in a
business that improbably paired spas with seafood restaurants. Now he was extending his
chain to the capital, and he wanted a landmark to announce his arrival. Zhang didn't know
much about design, so he hired a young U.S.-trained Chinese architect to serve as
headhunter, instructing him to find a big name with a big vision. That's how in the spring
of 2003 Zhang came to meet Raimund Abraham—one of architecture's great iconoclasts
and a man whose designs are so radical that most exist only in the pages of a book titled
{un}-Built.
Zhang gave the ponytailed 70-year-old New Yorker few instructions. The building would
need to accommodate several restaurants, two bathhouses, an art gallery, offices and a
massage salon. Zhang said the design should evoke the sea and that it should be "the most
radical building in Beijing." A couple of days after their first meeting, Abraham produced
a sketch—a meditation on the ocean's violent power in the form of a 12-story block
gouged like a cliff at the edge of a raging sea. Zhang was dumbfounded. But after
Abraham explained the idea behind the forbidding façade, the client grinned.
Construction is set to begin in central Beijing later this year. "There's no way I could get
a design like this built in America," Abraham says. "But in China, one starts to feel that
anything is possible."
When it is completed next year, Abraham's ode to the oceanic will certainly turn heads.
But for the title of "most radical," it will have plenty of competition. China's construction
boom has attracted many of the world's finest architects, and amid the hurly-burly of the
country's breakneck development they have found a place to realize their most daring
visions. Jacques Herzog and Pierre de Meuron, the Swiss team responsible for London's
Tate Modern, have broken ground on an ingeniously intricate stadium for Beijing's 2008
Olympics. Frenchman Paul Andreu's new Beijing opera house—a titanium-and-glass
dome that will repose in a square reflecting pool like a phosphorescent jellyfish—is
already starting to bulge alongside Tiananmen Square. Zaha Hadid's signature sensuous
curves will gird Guangzhou's new theater complex. Michael Graves has given a
makeover to a bank on Shanghai's Bund. Norman Foster is at work revamping Beijing's
airport. And Rem Koolhaas' Rotterdam-based Office for Metropolitan Architecture has
designed a new headquarters for China Central Television (CCTV) that promises to be
one of the world's largest and most technically complex buildings.
Architecture thrives in societies on the make, and there is no place on earth right now
with ambitions the size of China's. Decades of enforced architectural monotony under
communism have left the country with few contemporary landmarks, a shortage of
visionary designers and an explosive, pent-up demand for buildings grand enough to
embody the nation's aspirations. Its cities are expanding fast: 6.09 billion sq m of new
buildings were constructed between 1999 and 2002 alone, nearly doubling the country's
total built floor space. Add to this a lack of modern urban-design conventions and a vast
pool of cheap construction labor, and it's not difficult to understand why so many
architects consider China, as Iraqi-born Hadid puts it, "an incredible empty canvas for
innovation." Or why Christopher Choa, who came to Shanghai two years ago to head the
local office of New York City-based firm HLW, says building in China is "like growing
weeds. In my short time here, I've built four skyscrapers and designed millions of square
feet of urban landscape. In New York, I'd have been happy to do as much in my entire
career."
The concept of the architect as inventor arrived relatively late in China. Until the 1920s
when Chinese trained overseas began to return home, the Chinese language didn't even
have a word for architecture. Traditionally, the country's builders hewed closely to
precepts laid out in a philosophical treatise on construction that dated back to the 12th
century. With the ascension of the Communist Party in 1949, building became an outlet
for ideology, and individual artistry came to be seen as a dangerous form of bourgeois
decadence. Even after constraints had loosened, in the 1990s, architects in Beijing were
required to top every new skyscraper with a traditional tiled rooftop. But now, as China
gropes for a new national identity, the one common trope that runs through its multitude
of recent buildings is an obsession with the idea of newness itself. "Clients here don't
know what they want," says Zhang Gong, a Chinese architect who recently returned to
the mainland after 10 years working in New York City and Paris. "They're looking for
something really odd, something to express newness. So they ask the architect to give
them the idea."
The results range from the truly novel to the merely (or disastrously) newfangled. In
China, "you're seeing things that no one in their right mind would build elsewhere," says
Anthony Fieldman, an American architect recently posted to the Hong Kong office of
Skidmore, Owings & Merrill. It's hard to imagine a city outside the mainland that would
have commissioned the $543 million Wukesong Cultural Center—an overreaching
behemoth of a basketball stadium that is also a hotel, a shopping mall and a 10-story TV
screen. It's part of Beijing's Olympic buildup, but no one is quite sure how it will be used
after the Games are over. Likewise, Shanghai's much-vaunted Pudong skyline, with its
gaggle of futuristic skyscrapers, might look good on a postcard, but it functions better as
a symbol than as part of a real city—its arid streets are almost devoid of human activity.
"Architecture in China has become like a kung fu film, with all of these giants trying to
vanquish each other," says Wang Lu, editor of Beijing-based World Architecture
magazine.
Soaring Ambitions — page 2
The lively urban street life of China's cities might become a casualty of the melee. The
mainland's cities are growing faster and on a larger scale than any in human history. The
Chinese Academy of Social Sciences estimates that by 2015 they will have to absorb
some 200 million rural migrants. In the relatively small city of Suzhou near Shanghai,
investment in residential construction increased by a factor of 65 between 1990 and 2002.
In Shanghai itself, residential housing space has doubled since 1996. Most of the world's
great cities have developed over decades or centuries, their neighborhoods evolving to
accommodate the shifting needs of the people who inhabit them. China's cities, by
contrast, are razed and rebuilt almost overnight. Urban planning in the mainland is at best
haphazard and dominated by real estate companies that rent land from the government
neighborhood by neighborhood rather than plot by plot. As a result, huge swaths of
terrain are often drastically reordered in a matter of months at the whim of a single
developer. "The problem with building at such a frenzied pace is that it takes time to
think," says Thomas Fridstein, CEO of Hillier Architecture in Princeton, New Jersey,
which is working on projects with both the Shanghai and Suzhou governments. And
thoughtful urban design is seldom an option. Says Guan Yetong, a planning official for
Shanghai's Xujiahui district: "We're so busy managing projects that we just don't have
time to think about the big picture."
"You can have the best architecture in the world, but if you have bad planning rules,
you've wasted your time," says Richard Burdett, dean of the school of urban planning at
the London School of Economics, on a recent visit to Beijing. "When you're building a
new neighborhood, you have to work within the existing grain. You have to make an
effort to identify the DNA of the city." But much of what passes for urban planning in the
mainland looks like genetic engineering gone haywire. The ongoing removal of Beijing's
dilapidated old alleyways, or hutong, may be ridding the city of outmoded housing. But
the bulldozers are also eradicating the complex social networks and bustling street life
these close quarters nurtured. Zoning ordinances (based on design dogmas long since
rejected in the countries where they originated but still used in China) dictate that new
residential buildings face south and that most must be spaced as far apart as they are high.
The result is often a sprawl of sterile apartment blocks, walled compounds and broad
motorways that are as environmentally inefficient as they are psychologically isolating.
The congenial adjacencies of schools and sidewalks, storefronts and stoops that form the
foundation of urban community life are an increasingly rare sight. China's cities have
begun to look more like suburbs. "There have been a lot of economists involved in the
planning of Beijing," laments Yin Zhi, director of Tsinghua University's Institute of
Urban Planning and Design, "but not a lot of people with cultural expertise."
If there's one man whose work in China most embodies the contradictions, challenges
and enormous promise of the country's architectural-boom times, it is Rem Koolhaas, the
Pritzker Prize-winning designer and theorist whose career runs the gamut from teaching
at Harvard to enshrining shoes for Prada. In the spring of 2002, the cerebral Dutch hipster
was invited to take part in two prominent design competitions: one for ground zero in
New York City, the other for the CCTV headquarters in Beijing. Koolhaas skipped New
York and chose Beijing, where the 500,000-sq-m gravity-defying trapezoidal loop he
would conceive with design partner Ole Scheeren has since become a lightning rod for
controversy. Detractors cite the $730 million CCTV project as the ultimate example of
the Chinese regime's tendency to plunder state coffers to glorify its own iron authority
and say Koolhaas is an opportunist taking advantage of the country's unique combination
of state power and state capital to realize his own artistic ambitions. Ian Buruma, a writer
who is a friend of Koolhaas, wondered aloud in the Guardian, a British newspaper, how
the world would have reacted if an architect of Koolhaas' stature had in the 1970s
designed a TV station for Chilean dictator Augusto Pinochet.
But Koolhaas, 59, who was one of the first Western architects to study and write about
China's urban explosion, revels in such intellectual tussles. CCTV, he insists, like the
mainland itself, "is in mutation" and the building represents an effort to complement the
state-owned company's desire to keep pace with the times. CCTV's current headquarters
is completely closed to the public. Koolhaas' design, in contrast, includes a public "media
park" in and around the base of the building intended to foster more interaction between
commissars and the masses. "We are engaged," he says, "with an effort to support within
[China's] current situation the forces that we think are progressive and well-intentioned...
We've given them a building that will allow them to mutate." Says Scheeren: "In all
fairness, without CCTV's change we never would have got to do this project."
Koolhaas is also interested in mutating the way Beijing thinks about public space. Last
year he submitted a proposal to the Beijing government urging it to consider more low-
rise, courtyard-style buildings for the capital's new financial district rather than the
standard norm of office towers. That proposal was rejected, but Koolhaas remains
convinced that China represents a crucial front in what he calls his "campaign to kill the
skyscraper." Koolhaas has a reputation for theatrics, but in this case his choice of words
reflects the depth of his conviction. The skyscraper, he argues, is an important invention
that has outlived its purpose. Devised a century ago to fit more people onto the small
island of Manhattan, the form fostered extreme urban density. But spaced so widely
apart—as in most mainland cities—skyscrapers inhibit human interaction.
"In Beijing, you have these needles and they collect their own little pathetic communities
while breaking down the larger community around them," Koolhaas says with a wince.
"It's an incredible squandering of the potential for exchange. It creates isolation right in
the center of the city." His scheme for the CCTV headquarters represents one possible
solution to this problem. Instead of distributing CCTV's many units across a series of
towers, his megabuilding will put more than 10,000 of the station's employees—
electricians and executives alike—under the same angular roof, entering through the
same doors and riding the same elevators. Koolhaas hopes the monumental loop will
encourage more companies to consider similarly daring experiments, even if they seem a
little, well, loopy.
Soaring Ambitions — page 3
It's unlikely anyone will try to replicate the CCTV edifice, though. The structure of the
building (scheduled to be completed in time for the Olympics) is dizzyingly complex.
The skyscraping anti-skyscraper consists of two towers braced against each other at a
height of 160 m. No two of the 55 stories have the same floor plan. The entire structure is
sheathed in a supporting mesh that must be adequately rigid against Beijing's windstorms
but flexible enough to withstand earthquakes. According to Scheeren, the project has
engaged 75 engineers for more than a year to compute the stress on every I beam—
calculations that, he says, must be three times more precise than those required for an
ordinary skyscraper. After an initial nod from the jury—which consisted of foreign and
Chinese architects and CCTV employees—Koolhaas and his team spent the summer of
2002 in a tiny workshop in a Beijing hutong preparing a model for China's political
leaders, in part to convince them that the building would actually stand up.
It was partly that hutong sojourn that inspired another of Koolhaas' mainland projects: a
study for Beijing's urban planners on the preservation of the city's dwindling stock of old
buildings and neighborhoods. On a stroll through the capital he points out a surprising list
of structures he would like to see kept in place: courtyard homes, 1960s apartment
blocks, and a pair of stainless steel sculptures that resemble lollipops covered in spikes
and already look painfully anachronistic, even though they were erected only five years
ago. Ensuring that Beijing's residents have visible evidence of how their city has evolved,
Koolhaas asserts, is a necessary counterpoint to his forward-looking building designs. "I
find it very important that we don't do hit-and-run projects," he says. "I don't want to be a
carpetbagger. Westerners have really been, in a certain way, exploitative. They use the
opportunities but they don't really think about the impact. We're trying to engage in a
kind of systematic investigation of what—in the current circumstances and with the
current economy—would be a plausible repertoire of urban forms. I think you can invent
new forms that are about street life. That's what interests me: to maintain the specificity
of this city."
I don't want to be a carpetbagger. Westerners have
really been, in a certain way, exploitative.
—REM KOOLHAAS, Dutch architect
Property developers rarely share these preoccupations, but there are exceptions. Zhang
Xin and her husband, architect Pan Shiyi, co-founders of the private real estate developer
SOHO China, are among the country's most outspoken defenders of the urban habitat.
After phenomenal success selling space in her husband's SOHO New Town, a colorful
housing complex on the east side of Beijing, Zhang is now trying to create opportunities
for prominent architects to make Beijing a more intimate city.
Last December she announced the results of a competition for part of a vast
redevelopment scheme in the southwest corner of the city that will transform a trucking
depot into a residential and commercial complex with a daily traffic of 200,000 people.
Zaha Hadid, who last month became the first woman to be awarded the Pritzker Prize
(architecture's highest honor), won the contest with a design that calls for winding
alleyways, boomerang-shape towers and a variegated array of high- and low-rise
structures—a conscious departure from Beijing's monotonous mess of concrete towers.
"The goal of the project," says Hadid, "is to create instant complexity as if the place
developed over 20 years."
It's a controversial notion, but one that China must test if it hopes to give birth to cities
that rise to the challenges of its rapid urban growth. Closer to the center of Beijing at
another of Zhang's projects, Jianwai SOHO, the idea of the instant neighborhood is
catching on. A dazzling asymmetrical arrangement of transparent white apartments,
offices and shops designed by Japanese architect Riken Yamamoto, connected by a
suspended web of sidewalks, it is Zhang's attempt, as she puts it, "to advocate urbanism
to the market, to create a neighborhood rather than just a compound." So far, the market
seems convinced. The project's first three phases of construction—about 300,000 sq m—
have completely sold out.
No one can tell yet whether SOHO's developments will resuscitate community life any
more than Abraham's imposing façade will sell seafood or Koolhaas' megabuilding effect
megachange. What is certain is that however the buildings of this new era are regarded by
future generations, they will serve as a powerful record of the explosive, deliriously
ambitious, brazenly inventive climate in which China's cities are now being reshaped. It
will be a landscape hewn in the thrashings of a sea of change.
With reporting by Huang Yong and Jodi Xu/Beijing
From MIT:
Sloan, China universities launch
management education initiative
============================================================
MIT Tech Talk * Wednesday, July 24, 1996 * Vol. 41 No. 1
MIT Tech Talk is published by the MIT News Office at the
Massachusetts Institute of Technology, Cambridge, Mass.
MIT News Office Web page:
E-mail: * Phone: 617-253-2700
============================================================
Sloan, China universities launch management education initiative
The Sloan School of Management has joined with the two top
universities
in the People's Republic of China (PRC) to launch a major new
collaboration aimed at strengthening China's international management
education programs and conducting research on the emergence of the
world's largest new market.
Under the auspices of the China Management Education Project, Sloan is
working with the business schools of Fudan University in Shanghai and
Tsinghua University in Beijing to provide both the faculty development
and the curriculum development required to educate a new class of
manager for the international arena.
In the process, Sloan faculty and students will build relationships
with students, faculty and industry leaders in China that will allow
them to learn more about the special challenges facing the nation as it
makes the transition to a globally integrated market economy.
"This is an important opportunity for both China and the US," said
Sloan School Dean Glen L. Urban. "Through management education and
research, we can help to establish the common ground of understanding
that can lead to the successful integration of China into the world
economy for the benefit of all."
"There is a huge demand for trained managers in China as we embark on
the path to a market economy," said Professor Yuan Xu, associate dean
of
the School of Management at Fudan University, during a recent visit to
Cambridge. "This program will allow us to improve the quality of our
management faculty while implementing a new curriculum."
"The area of international management is critical for us," agreed Dean
Chunjun Zhao of the School of Economics and Management at Tsinghua
University. "Our students need the basic skills and insights required
to
work effectively with international companies and with new ventures in
the global environment." Dean Zhao is also vice chairman of the
National
MBA Education Advisory Committee for the PRC.
An initial curriculum for the Chinese schools has been developed based
largely on a series of relevant classes drawn from Sloan's current
curriculum. Plans call for selected faculty groups from Fudan and
Tsinghua to come to Sloan beginning in January 1997 to help teach the
core courses that they will then adapt for transfer to their home
universities. This process will continue through September 1998, when
the program will be launched in China. Throughout this period and until
2001, Sloan faculty will also make frequent visits to the Chinese
campuses to oversee continuing curriculum refinement and to build
research relationships. These visits will be augmented with ongoing
videoconference contacts among the schools.
"Sloan students will benefit greatly from this collaborative
exchange," explained Donald R. Lessard, Epoch Foundation Professor of
International Management at Sloan. "The visiting faculty will provide
case studies and perspectives from Chinese industry, and our faculty
will be able to incorporate insights drawn from their expanded research
relationships into new and existing classes, both for our MBA program
and for our executive programs."
Sloan has a long history of institution building in other countries.
In the 1960s, for example, the School played a leading role in the
development of the Indian Institute of Management in Calcutta. In 1995,
Sloan completed a successful five-year program to push the development
of the Nanyang Business School at Nanyang Technological University in
Singapore.
EARLY EMPHASIS
Sloan's many current involvments in Asia have grown out of Professor
Lester Thurow's initiatives as dean nearly a decade ago. Insisting that
students would need to know as much about China and Chinese-based
economies as they do about traditional western economies, he made a
strategic commitment to developing relationships with countries in the
region, including Singapore and China.
"Our unique approach to China builds on our past experience as well as
our strengths in faculty development, curriculum development and
research," said Senior Associate Dean Alan F. White, the chief
architect
of Sloan's program. "We expect to learn a great deal about the special
forces at work in a emerging economy as we help Tsinghua and Fudan
develop an innovative new International Management Program that will
help the Chinese business community work more effectively with the
business communities of other nations."
The Management Education Project is one of a growing number of China-
related collaborations and activities at MIT. These projects include
initiatives in such crucial areas as infrastructure development, the
environment and language (see accompanying story). The PRC is not the
only focus of Sloan's international involvements; a number of
initiatives with other countries are in various stages of planning and
execution, including Singapore, Thailand, India, Taiwan, Mexico and
Chile.
Sloan is the most international of the top business schools, with 37
percent of its students hailing from other countries. The School's
network of alumni/ae hold key positions in 82 nations around the world.
"The driving force for our international relationships is our students
as well as our alumni," Dean Urban said. "It is our responsibility as
educators to build the critical foundation of knowledge and
understanding they will need to succeed in this diverse world where
virtually all business is international."
BI alumni evening on September 21st:
Dear BI Alumni,
We are very pleased to see that so many of you will attend our alumni evening on
September 21st, and look forward to seeing you at this special event. Please find the
attached program.
For those who still have not registered for the evening: there is still time to do so, please
let us know on the following e-mail before September 10th: bilo@fudan.edu.cn or
jane_bilo@hotmail.com
Please note: Formal dress.
Best regards,
Anne Berit Roksvaag
Project Coordinator
Norwegian School of Management BI
BI
Norwegian School of Management BI
Executive School
For details, please visit HERE
Launching ceremony of wireless LAN:
After one month testing, wireless LAN, which covers almost all the area of the school,
has been proved to be successful and many teachers and students at school have benefited
greatly from its convenience and efficiency. May 20, Shanghai Telecom, the sponsor and
local news media will be invited to join the ceremony.
Introduction of Fudan MBA Program:
In 1991, Fudan University was approved by Academic Degree Committee under the State
Council to be one of the leading universities providing MBA education on a trial basis.
Since then, Fudan MBA program has cultivated a lot of senior management talents who
are now active on both domestic and international business stages, contributing to China's
economic development.
Fudan MBA program is flexible in its term structure, providing either full-time or part-
time courses. To meet the needs of China's market-oriented economy, Fudan MBA
program covers a wide range of courses, including International Management, Marketing,
Financial Management, MIS, Operation Management, Entrepreneurship &Venture
Capital and E-Commerce. The program is equipped with the first-class faculty in Fudan.
It now has over 100 faculty members, including 24 professors and 32 assistant professors
(16 of them are doctoral scholars with doctoral degrees. More than 70 percent of the
faculty members have the experience of studying abroad.
Fudan MBA education links theories with business practices, focusing on practical
training and hands-on experience. Cases, team discussion and computer simulation are
widely used throughout the lessons. Besides, the program is actively engaged in
consulting projects and high-level forums within and outside the university. The MBA
students also have the opportunities to study overseas or to have internships in both
famous foreign and domestic enterprises.
In 1996, Management School of Fudan University started cooperating with MIT Sloan
School in its "China's Management Education Program" that aims at training MBA
students in China. Sloan School sent about 10 professors every year to work with Fudan's
MBA faculty in setting up curriculum and teaching methodology. For International
Management especially, the cooperation team developed the world-class education plan,
facilities and courses. Fudan School of Management also sent faculty members to Sloan
School to learn its advanced MBA education practices. With the efforts by both sides,
Fudan-MIT International Program has achieved a big success. In March 1999 and 2001
respectively, Fudan IMBA teams won the "Asian Moot Corp Business Plan Competition"
over the other 12 top Asian business schools.
After ten years of development, there have been more than 800 Fudan MBA graduates
who are active in both the local and international business fields. After China enters
WTO, the economy of China is bound to experience greater development, which will
bring about new challenges and opportunities for China's MBA education. Fudan is
striving to become one of the world top business schools.
News & Events BI alumni evening on September 21st:
Dear BI Alumni,
We are very pleased to see that so many of you will attend our alumni evening
September 21st, and look forward to seeing you at this special event. Please fin
attached program.
For those who still have not registered for the evening: there is still time to do
let us know on the following e-mail before September 10th: bilo@fudan.edu.c
jane_bilo@hotmail.com
Please note: Formal dress.
Best regards,
Anne Berit Roksvaag
Project Coordinator
Norwegian School of Management BI
BI
Norwegian School of Management BI
Executive School
For details, please visit HERE
Launching ceremony of wireless LAN:
After one month testing, wireless LAN, which covers almost all the area of the
has been proved to be successful and many teachers and students at school hav
benefited greatly from its convenience and efficiency. May 20, Shanghai Telec
sponsor and local news media will be invited to join the ceremony.
Introduction of Fudan MBA Program:
In 1991, Fudan University was approved by Academic Degree Committee und
State Council to be one of the leading universities providing MBA education o
basis. Since then, Fudan MBA program has cultivated a lot of senior managem
talents who are now active on both domestic and international business stages,
contributing to China's economic development.
Fudan MBA program is flexible in its term structure, providing either full-time or part-time courses. T
the needs of China's market-oriented economy, Fudan MBA program covers a wide range of courses,
International Management, Marketing, Financial Management, MIS, Operation Management, Entrepr
&Venture Capital and E-Commerce. The program is equipped with the first-class faculty in Fudan. It
over 100 faculty members, including 24 professors and 32 assistant professors (16 of them are doctor
There are 37 young scholars with doctoral degrees. More than 70 percent of the faculty members have
experience of studying abroad.
Fudan MBA education links theories with business practices, focusing on prac
training and hands-on experience. Cases, team discussion and computer simula
widely used throughout the lessons. Besides, the program is actively engaged i
consulting projects and high-level forums within and outside the university. Th
students also have the opportunities to study overseas or to have internships in
famous foreign and domestic enterprises.
In 1996, Management School of Fudan University started cooperating with MI
School in its "China's Management Education Program" that aims at training M
students in China. Sloan School sent about 10 professors every year to work w
Fudan's MBA faculty in setting up curriculum and teaching methodology. For
International Management especially, the cooperation team developed the wor
education plan, facilities and courses. Fudan School of Management also sent f
members to Sloan School to learn its advanced MBA education practices. With
efforts by both sides, Fudan-MIT International Program has achieved a big suc
March 1999 and 2001 respectively, Fudan IMBA teams won the "Asian Moot
Business Plan Competition" over the other 12 top Asian business schools.
After ten years of development, there have been more than 800 Fudan MBA gr
who are active in both the local and international business fields. After China e
WTO, the economy of China is bound to experience greater development, whi
bring about new challenges and opportunities for China's MBA education. Fud
striving to become one of the world top business schools.
Snapshots of MBA Orientation Activity:
Integration for Technology Transfer Liu Youlin
President of Northern Technology Exchange Market
Introduction
As is well-known, the social development and the power of a nation is closely related to
technological innovation and the transfer and application of technology. Today with the
rapid development of modern high technology, there are unprecedented prospects of
technology transfer.
As a developing country, China has committed itself to economic reform and
modernization. It is therefore critical for China's social and economic development that it
takes this historic opportunity, brought about by the rapid growth of modern science and
technology and the emergence of a knowledge-driven economy, to extend the scale and
rate of its technology transfer and to strengthen the competitiveness of its science and
technology.
Although technology transfer has been under way in China for a while, there is now some
doubt about which method is better - the diversification of technology transfer or the
single-mode means of technology transfer. Fierce market competition makes it a
necessity to shift the focus of technology transfer from "hardware"- products and
technology - to "software"- information resources, strategy, and knowledge. The
objective is to achieve comprehensive integration - "soft" with "hard", "hard" with
"hard", and "soft" with "soft".
The concept of "integration" has achieved great success in such disciplines as
information, manufacturing and management. Examples are the computer integrated
system in manufacturing and the LAF (lean-agile-flexible) production system in
management. Integration aims to fulfil holistic, multi-dimensional optimization of the
various resource elements so as to improve the overall effect and efficiency.
Northern Technology Exchange Market (NTEM), a standing technology transfer market
jointly set up in March 1995 by the Ministry of Science and Technology of China and
Tianjin Municipal Government, has built up a Technology Providing Network, a
Technology Seeking Network and an Information Network throughout the country -"a
network of membership with its function socialized and service industrialized". This has
now developed into a well-known regional intermediary institution of technology
transfer, that integrates science and technology resources and builds up an integration
platform to provide technology transfer, go-between, information and international
communication services.
We will now discuss NTEM's achievements.
Integration for industrialization
The distinct feature of current developments in science and technology is the inter-
disciplinary approach, to which technology transfer needs to adapt. In other words, stress
needs to be laid on the integration of high and new technologies to provide services not
only during R&D but also during transfer.
A technology integration platform facilitates the development of high and new
technologies and their industrialization. It provides comprehensive technical services for
the regional growth of the economy. It also helps advance science and technology
through various activities: making full use of R&D and technical resources supplied by
NTEM's Technology Providing Network and collecting information; developing
significant areas of technology for the modernization of agriculture; developing advanced
common technology; promoting technology commercialization and industrialization
projects, and then building up a technology integration platform to cover talents, patents,
productive projects and essential conditions for R&D.
As of now, NTEM has constructed an integration platform for specific technologies -
nanometer technology; new materials; high-clarity TV sets, environment technology;
water-sparing technology etc. NTEM has invited top experts 8t home and from overseas
to give academic lectures and seminars; assisted with offering opportunities for project
argumentation and consultation for enterprises; arranged exhibitions of research products,
investment negotiations and technology match-making; established a specific information
website, and assessed projects commissioned by the departments of science and
technology management. Thus NTEM has earned a good reputation for offering
comprehensive consultation and services to governments, integrating the resources of hi-
tech and aiding in seeking new technologies and markets for enterprises.
Case: Tianjin environment project
In August 2002, NTEM held a seminar entitled "Tianjin Science and Technology Project
for Environment in 2002", sponsored by Tianjin Science and Technology Commission,
Tianjin Planning Commission, Tianjin Economic and Trade Commission, Tianjin
Construction Commission and Tianjin Bureau of Environmental Protection. There were
more than 200 participants who came from enterprises, colleges, universities and research
institutions all over the country NTEM had invited Mr. Liu Hongliang, an academic of
the Chinese Academy of Engineering, to give a lecture on "Environmental Pollution and
Counter Measures in China"; and Mr. Wang Yangzu, president of the Association of the
China Environmental Protection Industry to give a lecture on "Market Trends for
Industries Relevant to Environment in China's Tenth Five-Year Plan".
The achievements of environment protection industries in Tianjin were demonstrated
through the "Exhibition on Accomplishments in the North Environment Protection
Technology Industrial Base", and a diskette named "Visiting the North Environment
Protection Technology Industrial Base," because the environment industry is a key
industry in both Tianjin and China. It was a large-scale, high-level seminar, with many
renowned professionals, scholars and entrepreneurs making presentations. So many
achievements from more than 66 enterprises in Tianjin - like Baili Environment Facility
Group - were displayed that a complete communication platform was set up for Tianjin
and the whole country's circle of environment protection, which will offer greater
opportunity for development in Tianjin.
Integration platform for diversified services
The complexity and asymmetric character of information required during technology
transfer require diversification of services by technology transfer institutions. It would be
hard to meet these requirements without multi-functional services. To facilitate
technology transfer, NTEM offers integrated services, such as technology match-making,
project consultation, assessment of intangible assets, research of market potential, and
insurance of technology contracts. This it does by need-seeking, listing current
achievements, selecting projects, introducing key-projects, match-making, promoting
contracts, coordinating performance and tracking feedback. NTEM has established
several centres for technology transfer, a technical broker management office, and the
like. Meanwhile it keeps in touch with scores of venture capital investment institutions,
listed companies and intermediary organizations at home and abroad to extend its
acivities to financial fields, such as investment and insurance.
Through an intermediary platform our services have been made specific, tailored to
regions and to individuals, as we will now describe.
Services for SMEs
Small and medium-scale enterprises (SMEs) are an essential force not only in the
development of an economy but also because of its enormous scale in technological
innovation, and so it is the prime target in our services. Several years of experience have
taught NTEM that what SMEs need is specific or individualized services for technology
transfer. On the one hand, technology-oriented SMEs have their unique advantage in hi-
tech areas, especially in technological innovation. This is because the origination of
intellectual property primarily depends on an individual's intellect. Thus what these
SMEs need is mainly project-packaging and market-development.
On the other hand, traditional SMEs lack technology resources for renewing their
products and transforming their processes, and urgently need outside support in
technology and intellect.
It is clear, there fore, that NTEM needs to provide two distinct types of services. For the
former category of SMEs, NTEM assists with project consultancy and assessment,
market investigation and commercial planning. It also applies for projects promoting
local developments in science and technology by means of packaging and commissioning
new techniques.
For the latter category, NTEM helps first with technical diagnosis for enterprises, expert
consultations in the field, and inviting bids for technology solutions. It then helps them to
improve their technology through effective match-making with the developing
capabilities and technical specializations of research institutions.
For instance, through this match-making service, the Tianjin Research and Design
Institute of the Chemical Industry and the Tianjin Science and Technology College were
able to transfer the following projects: "Pilot plant operation for a new process of sodium
tripolyphosphate", "Sewage disposal by polyester section", and "Complexing rectification
technology". These have not only strengthened the competitiveness of certain enterprises
but also brought handsome returns to the institutions. Meanwhile the more advanced
general techniques - rapid original manufacturing technique, extraction above critical
point, and information management - are disseminated among enterprises with the
collaboration of departments of science and technology.
Trans-regional technology transfer
There is an imbalance in economic growth between different regions, which gives rise to
a practical demand to spread knowledge and transfer technology. NTEM selected several
regions (Jiangsu, Shandong, Hebei and the periphery of Tianjin, etc.) which are in urgent
need of technology and can readily absorb them. It then arranges for experts and
scientists with their projects and achievements to go to these regions and to offer their
services to accomplish trans-regional technology transfer.
For instance, over a period of seven years, together with the government of Tianjin
Wuqing District, NTEM has been undertaking activities from inviting bids for technology
solutions to scouting for talents to inviting investments and foreign trade. As a result, in
this district there are now more than 200 enterprises that have established long-term
connections with 96 research institutions, like Qinghua University and Tianjin
University, reached 306 agreements of technology cooperation, and solved 184
technology difficulties. Also, over the last four years, together with the government of
Wuxi, NTEM has been conducting negotiations for new technologies for the private
sector there. In October 2003 more than 50 institutions and universities presented the
fourth Wuxi Negotiations held by NTEM, which saw the conclusion of six agreements
for cooperative projects (with funds exceeding 10 million) and attracted investments of
aggregate value exceeding 100 million.
Information integration platform
An inform8tion network based on the computer and the Internet is a driving force for
technology transfer, thanks to the possibilities of information sharing and intending. It not
only improves the efficiency of hi-tech information collection and dissemination, but also
offers the channel an opportunity to be aware of feedback, market demand and
technology demand. NTEM therefore established the -"NTEM Technology Web"
(http://www.ntem.com.cn) and a newsletter, "NTEM Technology Info" in both English
and Chinese. Together these have formed a chain of services - information collection,
processing and issue, online services and feedback. The next step was to build up nine
comprehensive databanks with technical projects, patent products, experts and talents,
and investment proposals. The website has 40 columns and more than 700,000 pieces of
information, and gets up to 5,000 "hits" a day. It has become a significant, well-known
website for technology transfer and is an efficient platform to collect and spread
information overseas.
The website's information integration is reflected in both content and function. In terms
of content, there is two-way communication between demand for and supply of
technological information. Thus information on technological achievements is
disseminated through many channels; while information is sought and collated on
technical demand and difficulties; and feedback from enterprises is publicized online to
develop appropriate technology to meet market demand. In terms of function, there is a
constant effort to improve interaction with the website users. Instant data retrieval
services are offered, and interactive windows in the homepage introduce key projects
online. In addition, from last year, NTEM has been entrusted by the Chinese Ministry of
Science and Technology with establishing a platform to popularize research
achievements, as well as with establishing a Tianjin technical trade information platform.
It will then be possible to offer information services at a new level as the NTEM
technology network integrates with the national and regional network.
Case: Overseas research projects
In August 200, an exchange conference for overseas doctors' research projects was held
in Tianjin. Prior to the meeting NTEM collected R&D projects from over 100 overseas
doctors around the world through the information platform, processed them and presented
them online, and then matched them with more than 3oo enterprises. It remained in
contact with all the 62 cooperative projects that were contracted between China and
foreign countries at the meeting, and facilitated their implementation and played an
important role as a carrier of information integration.
Extending market for technology transfer
To develop international communication and cooperation is, to some degree, to extend
technology transfer and to help Chinese technology transfer integrate with the global
market. To achieve this goal NTEM introduced the advanced ideas, operating
mechanisms and service models of research institutions in developed countries, thus
evolving a strategy for the use of its intellectual property. Through international
technology communication activities, it introduced new ideas and technologies. Finally it
took up international cooperative projects between domestic research institutions and
overseas enterprises.
NTEM insists on four principles: introducing new concepts and ideas, cooperating with
other institutions, communicating information and striving for substantial results in its
operations. In the eight years since the first China-Japan Technomart held by Japanese
Technology Exchange and NTEM in 1996, the latter arranged 17 international
technology exchange activities at home and abroad, received foreign delegations, experts
and scholars, and officials of foreign embassies in China 25 times; organized 8 group
visits abroad for technical exchange, and introduced and recommended over 460
international research achievements and projects. More than 670 research institutions and
enterprises have been involved in the above activities, which extend to 28 provinces.
NTEM has gradually begun to benefit from advanced ideas on technology transfer by
visiting developed countries, inviting experts to give lectures in China; attending and
organizing international seminars, communicating with foreign experts face to face, etc.
For instance, its commercialization of research findings and technology transfer is an
extended concept covering all actions and phenomena of transfer of technologies and
knowledge from academia to industry. This enriched its views on, and experience of,
technology transfer. It has expanded its serving functions from three to six: technical
information, technical partnership, meetings and exhibitions, technical agency, technical
property rights trade and international collaboration. Dozens of provinces in the whole
country and in several foreign countries have been explored.
Again, in order to activate the technology transfer market, developed countries have paid
great attention to building up a favorable policy environment and protecting intellectual
property. So NTEM has been referring similar suggestions and appeals to local
legislatures in many ways.
Developed countries consider technology transfer as a professional intellectual service
calling for special knowledge and skills. Hence, NTEM not only makes a point of
communication and cooperation with other technology transfer organizations, but also
pays great attention to complement and benefit them.
In a word, these advanced concepts have been of great help for NTEM to broaden its
vision, widen its horizons, and keep up-to-date with standard international practices.
During these 8 years, NTEM has built up relationships with more and more technology
transfer organizations in America, Japan, Korea, Russia, Hong Kong, Taiwan, and other
technological intermediaries in APEC, and APCTT. It was successful in entering
cooperative agreements with Hong Kong Productivity Council, HK Science and
Technology Parks Corporation, Songdo Techno Park in Korea, Office of Technology
Licensing of Stanford University, Technology Licensing Office of the Texas A&M
University, etc. Under the principle of mutual benefit, NTEM has regularly exchanged
technical and operations information, provided technical items, handled requests
promptly investigated cooperative opportunities, and assisted in technical activities. All
this helped established the foundation for the international communications platform.
On its international communications platform, NTEM has promoted international
cooperation among science and technology intermediaries, research institutions and
enterprises of APEC members through imaginative technology activities. From 1996 to
2000, NTEM held China-Japan Technomart 5 times, during which more than 800
technology items were negotiated by 400 Chinese research institutions and enterprises
and 57 Japanese companies. Thus, Chinese Yantai Aquatic Product Company signed an
agreement with Japanese Fuji Corporation on a new type of wrapper. With improved
packing technologies, they were able to export more aquatic products to Japan. Tianjin
Communication and Broadcast Corporation signed a technology transfer agreement with
Asia Hi-Tecs Corporation on automobile accessories. Their products have been exported
to Japan. At China-Japan Software Cooperation Forum and Software Product Fair in
2003, NTEM invited more than 120 representatives of 70 Japanese companies, like NEC,
Fujitsu and Shimadzu. These companies concluded 19 software export agreements with
many Chinese companies, like Tianjin Apollo information Technology Ltd. NTEM also
held China-India Technomart, China-Korea Technomart and Tianjin-Hongkong
Technomart several times, organized Chinese companies to visit Japan to learn advanced
technologies of environmental protection; and led scientific research institutions to take
part in item partnerships in Hong Kong. Not long ago, it organized a delegation to visit
the USA for technology transfer. The delegation visited the office of Technology
Licensing of Stanford University, the Office of Intellectual Property Administration of
UCLA and the Pacific Design Center. NTEM also established cooperative relationship
with the OTL of Stanford University at that time.
Case: Major seminars
After China's entry into the WTO, technology transfer and intellectual property have been
of increasing concern. In early 2002, NTEM organized a delegation for the International
Patent Licensing Seminar 2002, held in Tokyo, Japan. This seminar inspired it to hold a
large, high-level international communication meeting, to enable domestic enterprises
and tech-transfer institutions to broaden their horizons and thought processes. Then,
under the support of China Technology Market Management and Promotion Centre and
Tianjin Science and Technology Commission, it held the first international seminar on
technology transfer and intellectual property in Tianjin in Oct. 2002. The seminar took
21st century technology transfer and intellectual property strategy as its theme, and
discussed the opportunities and challenges in facilitating technology transfer and new
technology industrialization with China's entry into WTO.
Lectures were given by Mr. Terry A.Young, ex-president of the Association of
University Technology Managers (AUTM); Mr. Uwe Haug, Director of the International
Department of Steinbeis Foundation (StW); and Mr. Takeshi Murakami, Director of the
Technomart Department of the Japan Industrial Location Centre. NTEM became aware
of the policies, rules and laws relevant to technology transfer services, and practically
developed country experiences of the concept and mechanism of intermediary services.
Over 150 participants, representing 28 provinces of China, discussed the subjects and
measures faced in establishing and developing the Chinese technology innovation service
system.
They accepted NTEM's leadership in facing the new challenges in the domestic technical
market and technology transfer service areas. There was also a very constructive seminar
with a clear theme, and discussion on both theory and practice, which helped China's
technology services to know about and make use of the experiences and practices in
developed countries. Technology transfer service is sophisticated and systematic, and
needs multi-sided cooperation and support. NTEM has over the years established
cooperation with more than 280 leading research institutions, such as Qinghua
University, Xian Jiaotong University, Nankai University, China Carrier Rocket Institute,
and China Ship Institute. This technology-providing network enables NTEM to attain
sufficient and reliable technology and intellectual resources, and to provide tech-transfer
services in an endless stream. It has set up nearly 100 liaison offices over 20 provinces in
the country and has thus built up a large technology-seeking network in connection with
thousands of enterprises. It thus has market resources with constant technology needs. It
has also established cooperation with many well-known tech-transfer institutions at home
and abroad, such as Shanghai Technology Transfer Exchange, Shenyang Technology
Transfer Exchange, Japan Technomart Foundation, APCTT, Steinbeis Foundation, and
Office of Technology Licensing of American Stanford University, to organize various
activities.
In a word, NTEM has gained some knowledge exploration and practice in integrating
resources and services and establishing platforms with assistance from many areas. On 9-
10, February 2004, China's Ministry of Science and Technology and Thailand's Ministry
of Science and Technology held a seminar to plan the 2004 Workshop on Development
of S&T Intermediary Mechanism of APEC in Beijing, China. More than 180 experts and
scholars, from the 14 members of APEC, were present at the meeting to discuss the
theme - technology innovation and general development. The president of NTEM
addressed the meeting on the subject of international technology exchange and
cooperation. The chairman of the seminar spoke highly of the experiences and
achievements of NTEM. The organization hopes that it can, together with more partners,
develop in all directions and more areas, with greater multi-level cooperation to promote
the development of technology transfer. ¡¡¡¡
Organizational structure ----
Office
Responsible for NTEM's internal administration, offering logistic services for all kinds of
technology business affairs
----Organizing & Liaison Department
Responsible for the construction and management of Technology Providing Network
(TPN) and Technology Seeking Network (TSN), organizing all types of technology
marching business, establishing relation and cooperation with international technology
transfer institutions, offering services for technology transfer, such as registration of the
technology contracts
----Information & Network Department
Responsible for construction and management of the information network of NTEM,
collecting and disseminating the information of the scientific and technological
achievement, Establishing and management NTEM's Website and technology database,
offering all kinds of information services
----Technology & Talent Communication Department
Responsible for organizing technology exhibitions, introduction meetings of new high-
tech products, technology Symposium & Seminar and training courses.
----Project Department
Responsible for the collecting, selecting marketable technologies, offering all kinds of
intermediary services, such as technology evaluation, immaterial assets estimate,
insurance of technology contract, market analysis and argumentation of feasibility.
----Finance Department
Responsible for financial affairs and business balance in NTEM
----Newsroom
Responsible for the information collection, edition and publish of "Northern Technology
Information", and exchange of issues between the same kind institutions
----Business affairs Center
Responsible for offering services for all kinds of exhibitions, such as specific decoration,
design and arrangement of the exhibition, OA services, color printing and computerized
lettering, etc.
Records of Important Events
Oct.27, 1993
State Science and Technology Committee replied to the letter of Tianjin Municipal
Government to agree with the establishment of Northern Technology Exchange Market
(NTEM) jointly
Mar.10, 1994
Tianjin City Council and Municipal Government authorized the establishment of NTEM
Dec.26, 1994
NTEM Management Committee held the first assembly in NTEM The first High-tech
Products Exhibition opened at NTEM
Mar.1, 1995
Open ceremony of NTEM was held Song Jian, Member of the State Councillor, Director
of State Science and Technology Committee, Gao Dezhan, Municipal secretary, Zhang
Lichang, Mayor of Tianjin presented at the opening ceremony, and Song Jian cutted the
ribbon for it
Nov.28, 1995
Zhu Guangya, Vice President of CPPCC, President of Chinese Academy of Engineering,
inspected NTEM
Dec.18, 1995
Chief Counsellor for business affairs of Russian Embassy in China reviewed NTEM and
negotiated the items about communication on technology between the two parties
Feb.20, 1996
Wang Lizi, President of NTEM, went to Russia for investigation with the Association of
Chinese Technology Market
May15, 1996
NTEM was awarded "Tianjin Civilized Market" by Tianjin Industrial and Commercial
Bureau
Dec.14, 1996
'96 China-Japan Technomart was held in NTEM
May.26, 1997
Director of Technology Management Group of Asian and Pacific Center for Transfer of
Technology came to NTEM on invitation to give lectures
Jul.9, 1997
'97 China-India Technology Technomart (Tianjin) was held in NTEM jointly by Asian
and Pacific Center for Transfer of Technology and NTEM
Nov.13, 1997
'97 China-Japan Technomart was held in NTEM
Jan.6, 1998
NTEM received the Golden Bridge Award of the Fourth Session of National Technology
Market by State Science & Technology committee
Oct.21, 1998
China Round the Baohai Sea Science & Technology Expo '98 was held in Tianjin. Yang
Xincheng, Deputy Mayor, Li Xueyong, Vice Director of Ministry of Science and
Technology presented at the opening ceremony
Nov.19, 1998
'98 China-Japan Technomart (Tianjin) was held in NTEM
Apr.12, 1999
Liu Peiqi, Vice President of NTEM and other two people went to Japan for investigation
and communication on technology transfer
Apr.28, 2000
Experts appraised "Industrialization of Cysticercus Cellulosae Cell Vaccine", which is an
intermediary item of NTEM
Aug.8, 2000
Website of NTEM (www.ntem.com.cn) opened formally, congratulated by more than 90
organizations, such as China Technology market Management & Promotion Center, Xian
Jiaotong University, CSTNET, etc.
Aug.11, 2000
Wuqing Center for Technology Transfer of NTEM opened, marking the extension of the
services of NTEM
Sep.7, 2000
NTEM Management Office for Technology Brokers was founded. The first group of
registered technology brokers began to work.
Location Address:
248, Baidi Road, Nankai District Tianjin 300192 P. R. China
¡¡¡¡¡¡¡¡ Northern Technology Exchange Market
TEL: 0086-22-87890253
FAX: 0086-22-87891047
Website: www.ntem.com.cn
E-mail: ntem@public.ntem.tj.cn
Three major services offered by NTEM
Information service
Collection and Dissemination of Technology Information
Technology information and technology database inquiry through Internet, including
Technology information, Demanding information, The national planned project
information, Enterprises information, Talents information, Wangfang data system, and so
on.
Tech Information release
Virtual Server
The periodical "Northern technological information"
Free fax service
Contact at: ntem@public.ntem.tj.cn
Marching service
Technological exhibition exchange activity
Tech marching contact
Tech negotiation
Tech difficulties bid-inviting
Scientific and technological talents exchange
Contact at: ygx@public.ntem.tj.cn sum@public.ntem.tj.cn
Intermediary services
Intangible assets evaluation
Technology consultant
Market analysis
Tech trading insurance
Technical brokage
Diagnose for enterprises
Contact at: zlz@public.ntem.tj.cn
Three major networks in original conception
NTEM have launched three major networks home and abroad. Member Network (MN),
Technology Seeking Network (TSN), Information Network (IN), which covering dozens
of provinces, cities and autonomous regions in china till now.
Member Network (MN)
Composing of a group of technology suppliers with enormous potentiality, including
famous R&D institutions, universities, enterprise groups and technical trading
corporations. MN can provide thousands of new achievements and relevant technologies
for the society annually.
Technology Seeking Network (TSN)
Through liaison offices all over China, connect more than ten thousands of companies
and enterprises, and provide following services:
Disseminate technology offers
Feedback technology requests
Organize technology trading events
Construct Technology Seeking Network (TSN)
Information Network (IN)
Basing on information centers and organizations throughout China, IN spread the latest
information of technologies, advanced know-how application, technology requests and
cooperation opportunities efficiently.
Member list
TSINGHUA UNIVERSITY
TSINGHUA UNISPLENDOUR GROUP (TH-UNIS)
TIANJIN UNIVERSITY
TIANJIN COASTAL ZONE COMPANY
TIANJIN DESIGN & RESEARCH INSTITUTE OF ELECTRIC DRIVE, MINISTRY
OF
¡¡ MACHINERY INDUSTRY
THE 3RD SURVEY AND DESIGN INSTITUTE OF RAILWAY, CHINA
INSTITUTE OF OCEAN TECHNOLOGY, SOA
TIANJIN POLYTECHNIC UNIVERSITY
RESEARCH INSTITUTE OF ENGINEEING TECHNOLOGY OF CHINA
NATIONAL
¡¡ PETROLEUM CORPORATION
TIANJIN TELEVISION TECHNOLOGY INSTITUTE
TIANJIN COMPUTER CENTER
TIANJIN SCIENCE & TECHNOLOGY AND TALENT DEVELOPMENT CENTER
TIANJIN HI-TECH INDUSTRY PARK DEVELOPMENT CO.
TIANJIN SCIENCE INSTRUMENTS & MATERIALS GROUP CORP
NORTH CHINA MUNICIPAL ENGINEERING DESIGN & RESEARCH
INSTITUTE
THE 46TH RESEARCH INSTITUTE MINISTRY OF MACHINERY &
ELECTRONICS
¡¡ INDUSTRY
BOHAI OIL RESEARCH INSTITUTE
TIANJIN ASSOCIATION FOR SCIENCE & TECHNOLOGY
THE RESEARCH INSTITUTE OF FORESTRY
THE FIFTH INSTITUTE OF PROJECT PLANNING & RESEARCH
CHINESE ACADEMY OF MEDICAL SCIENCES
TIANJIN ACADEMY OF AGRICULTURAL SCIENCE
NANKAI UNIVERSITY
TIANJAN AVIATION ELE-MECH. CO., LTD
TIANJIN RESEARCH&DESIGN INSTITUTE OF CHEMICAL INDUSTRY
TIANJIN WELDING RESEARCH INSTITUTE
TIANJIN INVESTIGATION, DESIGN AND RESEARCH INSTITUTE OF WATER
¡¡ RESOURCES & HYDROPOWER MINISTRY OF WATER RESOURCES
THE FIRST DESIGN INSTITUTE OF NAVIGATION ENGINEERING
TIANCI CO., LTD
BEIJING UNIVERSITY OF AERONAUTICS & ASTRONAUTICS
BEIJING ACADEMY
¡¡ OF AGRICULTURE AND FORESTRY SCIENCES
BEIJING CHANG CHENG AERONAUTICAL MEASUREMENT & CONTROL
¡¡ TECHNOLOGY RESEARCH INSTITUTE
TIANJIN YIQING GENERAL CORPORATION
BEIJING AERONAUTICAL MANUFACTURING TECHNOLOGY RESEARCH
INSTITUTE
TIANJIN SCIENTIFIC AND TECHNICAL EXCHANGE CENTRE WITH
FOREIGN
¡¡ COUNTRIES
ACADEMY OF MILITARY MEDICAL SCIENCES INSTITUTE OF HYGIENE
AND
¡¡ ENVIRONMENTAL MEDICINE
NATIONAL ENGINEERING RESEARCH CENTRE FOR URBAN WATER AND
¡¡ WASTEWATER (NATIONAL WATER CENTRE)
TIANJIN FOREIGN TRADE CORPORATION
707 RESEARCH INSTITUTE, THE SEVENTH ACADEMY OF CHINA STATE
¡¡ SHIPBUILDING CORPORATION
TIANJIN UNIVERSITY OF TECHNOLOGY
HEBEI UNIVERSITY OF TECHNOLOGY
BEIJING INSTITUTE OF AERONAOTICAL MATERIALS
INSTITUTE OF HEMATOLOGY & HOSPITAL OF BLOOD DISEASES CHINESE
¡¡ ACADEMY OF MEDICAL SCIENCES & PEKING UNION MEDICAL COLLEGE
CHINA ACADEMY OF LAUNCH VEHICLE TECHNOLOGY
TIANJIN UNIVERSITY OF LIGHT INDUSTRY
CHINESE ACADEMY OF AGRICULTURAL SCIENCES
THE 8358TH INSTITUTE OF CASC
TIANJIN 3D IMAGING TECHNIQUE CO., LTD
TIANJIN UNIVERSITY OF COMMERCE
BEIJING AVIATION MEASUREMENT & TEST RESEARCH INSTITUTE
TIANJIN INSTITUTE OF GEOTECHNICAL INVESTIGATION & SURVEYING
TIANJIN NORMAL UNIVERSITY
THE COSMETICS SCIENTIFIC & TECHNICAL INSTITUTE OF TIANJIN
CIVIL AVIATION UNIVERSITY OF CHINA
ACADEMY OF MACHINERY SCIENCE&TECHNOLOGY
8357 RESEARCH INSTITUTE OF AVIATION MACHINERY AND POWER--
GENERATING
¡¡ EQUIPMENT GROUP'S THE THIRD INSTITUTE
TIANJIN INSTITUTE OF REPROGRAPHIC TECHNOLOGY
TIANJIN INTERNAL--COMBUSTION ENGINE RESEARCH INSTITUTE
Technology Contract Law Of The People's Republic Of China (I)
Note: According to the requirements of readers, we plan to reprint the contents of some
laws and regulations concerned with technology transfer and Intellectual Property in
China on our website in succession, such as Technology Contract Law, Patent Law,
Trademark Law and etc.
(Adopted on June 23, 1987 by the 21st Session of the Standing Committee of the 6th
National People's Congress)
CHAPTER I General Principles
Article 1. This Law is formulated in order to give impetus to scientific and technical
development, to promote the service of science and technology for the construction of
socialist modernization, to protect the legitimate rights and interests of the parties to
technology contracts and to maintain order in the technology market.
Article 2. This Law applies to contracts made between legal persons, between legal
persons and citizens, and between citizens, which establish civil rights and obligations in
technical development, technology transfer, technical consultancy and technical service.
It does not apply however, to contracts in which one party is a foreign enterprise, other
foreign organization or foreign individual.
Article 3. The formation of a technology contract shall be in conformity with laws and
regulations, be of benefit to the progress of science and technology and accelerate the
application and dissemination of scientific and technical results.
Article 4. The formation of a technology contract shall conform to the principles of
voluntary participation and equality. mutual benefit and compensation, and trust and
integrity.
Article 5. Where the content of a technology contract touches on national security, or
where the greater interest demands confidentiality, this shall be handled in accordance
with the relevant State regulations.
Article 6. Technical results arising out of the execution of a unit's tasks or as a result
mainly of the utilization of the material technical resources of a particular unit shall be
professional technical results. The right to utilize and transfer professional technical
results. The right to utilize and transfer professional technical results lies with the unit
concerned, which has the right to conclude technology contracts relating to those
professional technical results. The unit shall reward the individual responsible for
achieving the said technical results in accordance with the income obtained by the unit
through the utilization or transfer of the professional technical results.
The right to utilize and transfer non-professional technical results lies with the individual
responsible for achieving those results, who shall have the right to conclude technology
contracts relating to the non-Professional technical results.
Application for patent and the award of patent rights with regard to professional or non-
professional technical results shall be handled in accordance with the Patent Law and
relevant regulations.
An individual responsible for achieving technical results shall have the right to state
clearly on documents relating to the technical results that he is the person responsible for
achieving them, and shall have the right to obtain a certificate of honor and a reward.
Article 7. The relevant State Council department in charge and the people's governments
of the provinces, autonomous regions and directly administered municipalities shall have
the right as required by the national and common social interest, to decide upon the
dissemination to and utilization by designated units of non-patented technical results of
major significance achieved by units under the ownership of the whole people, which fall
within their particular system or scope of jurisdiction. A unit utilizing technical results
has the responsibility to maintain the confidentiality of those results. The utilizing unit
shall pay a fee for use in accordance with the agreement between the two parties. If the
two parties are unable to reach an agreement, the designating organ shall determine a
reasonable fee.
The dissemination for use of non-patented technical results achieved by collectively-
owned units or by individuals, which are of major significance to the national or common
social interest, shall, where necessary, by handled in accordance with the aforementioned
provisions, following approval by the relevant State Council department in charge.
Article 8. The bodies responsible for administering technology contracts shall be
stipulated by the State Council.
CHAPTER II
Formation, Performance, Modification And Termination of Technology Contracts
Article 9. The formation, modification and termination of a technology contract shall all
be in written form.
Article 10. A technology contract shall be formed once the parties affix their signatures
or personal seals to the contract. Where State regulations require approval by relevant
organs, the contract shall be formed from the time of approval.
Article 11. The parties may stipulate guarantees for technology contracts. A contract
under which a third party is guarantor shall be formed once the guarantor and guarantee
affix their signatures or personal seals to the contract.
Article 12. The price or remuneration in a technology contract and its method of payment
shall be stipulated by the parties to the contract.
Article 13. A party may appoint an agent to form a technology contract on his behalf.
The appointing party shall provide the agent with a power of attorney. The agent shall,
within the scope of authority granted to him by the appointing party, conclude a contract
in the name of the appointed party.
Article 14. Any body which provides introductory services in the formation of a
technology contract which complies with the provisions of this Law and abides by the
principle of trust and integrity may accept reasonable compensation therefor.
Article 15. The articles of a technology contract shall be stipulated by the parties. They
shall generally include the following items:
(1) Name of the project;
(2) Content, scope and requirements of the object of the contract;
(3) Performance plan, progress projection, duration, place, and method of performance;
(4) Confidentiality of technical information and data;
(5) Liability for risk;
(6) Ownership and Sharing of technical results;
(7) Standard and method of acceptance;
(8) Price or remuneration and method of payment;
(9) Method of calculation of penalties or damages;
(10) Dispute resolution method;
(11) Definition of names and technical terms.
Technical background material relevant to the performance of the contract, and feasibility
and technical evaluation reports, project task and planning documents, as well as
drawings, tables, data and photographs may, as agreed between the parties, form an
integral part of the contract.
Article 16. A technology contract formed in accordance with the law shall immediately
become legally binding. The parties shall perform their duties fully as stipulated in the
contract. One party may not, of its own accord, modify or terminate the contract.
Article 17. If one party fails to execute a technology contract or if their performance of
their contractual obligations does not conform to the stipulated conditions, thereby
rendering them in breach of contract, the other party shall have the right to demand
performance or to adopt remedial measures, as well as have the right to demand damages.
The liability for compensation by the party in breach of contract shall be equivalent to the
loss suffered by the other party as a result of the breach, but shall not exceed the amount
which should have been foreseen by the party in breach at the time of forming the
contract.
The parties may agree in the contract that if one party is in breach of contract it shall pay
a stipulated monetary penalty to the other party. They may, alternatively, stipulate a
method for the calculation of damages.
A party which suffers a loss as a result of breach of contract by the other party shall
promptly take appropriate steps to prevent the loss form increasing. Should it fail to
promptly take appropriate action, thereby causing an increase in the loss, it shall not have
the right to demand compensation for the additional loss.
Article 18. If all parties are in breach of contract, they shall all bear equivalent liability.
Article 19. If one party is unable to fulfil its contractual obligations as a result of the
actions of a higher authority it shall, as stipulated by the contract, compensate the other
party for damages or adopt other remedial measures, after which higher authority shall be
responsible for dealing with the loss incurred in doing so.
Article 20. If a party is unable to perform a technology contract for reasons of force
majeure, it shall be relieved form its liability for non-performance.
Article 21. The following technology contracts shall be invalid:
(1) Those which violate the law or regulations or which are harmful to the national or
common social interest;
(2) Those which illegally monopolize or obstruct the progress of technology;
(3) Those which violate another's legitimate rights or interests; and
(4) Those concluded by way of deception or coercion.
An invalid contract shall have no legally binding force from the time it is made. The
invalidity of a portion of a contract shall not affect the remainder of the contract which
shall retain its validity.
Article 22. If the formation of a technology contract which violates the law or regulations
or which is harmful to the national or common social interest involves an illegal activity,
administrative or criminal liability shall be investigated and determined in accordance
with the law.
Article 23. If the parties are in unanimous agreement, a technology contract may be
modified or terminated.
The modification or termination of a contract approved by a relevant organ shall be
agreed to by the original approving body.
Article 24. If any one of the following circumstances arises, rendering the performance of
a technology contract unnecessary or impossible, one party shall have the right to notify
the other party of termination of the contract:
(1) Breach of contract by the other party;
(2) Force majeure;
(3) Public disclosure by another person of the specific technology of a technical
development contract.
Article 25. The modification or termination of a contract shall not affect the rights of the
parties to demand damages.
Article 26. Within the period of validity of a technology contract, one party may not,
without the agreement of the other party, transfer its rights or obligations in whole or in
part to a third party.
Patent Law Of The People's Republic of China (I)
Note: According to the requirements of readers, we plan to reprint the contents of some
laws and regulations concerned with technology transfer and Intellectual Property in
China on our website in succession, such as Technology Contract Law, Patent Law,
Trademark Law and etc.
Patent Law Of The People's Republic of China
(Adopted at the 4th Session of the Standing Committee of the Sixth National People's
Congress on March 12, 1984. Amended by the Decision Regarding the Revision of the
Patent Law of the People's Republic of China, adopted at the 27th Session of the
Standing Committee of the Seventh National People's Congress on September 4,1992)
CHAPTER I
GENERAL PROVISIONS
Article 1. This Law is enacted to protect patent rights for inventions-creations, to
encourage inventions-creations, to foster the spreading and application of inventions-
creations, and to promote the development of science and technology, for meeting the
needs of the construction of socialist modernization.
Article 2. In this Law, "inventions-creations" mean inventions, utility models and
designs.
Article 3. The Patent Office of the People's Republic of China receives and examines
patent applications and grants patent rights for inventions-creations that conform with the
provisions of this Law.
Article 4. Where the invention-creation for which a patent is applied for relates to the
security or other vital interests of the State and is required to be kept secret, the
application shall be treated in accordance with the relevant prescriptions of the State.
Article 5. No patent right shall be granted for any invention-creation that is contrary to
the laws of the State or social morality or that is detrimental to public interest.
Article 6. For a service invention-creation, made by a person in execution of the tasks of
the entity to which he belongs or made by him mainly by using the material means of the
entity, the right to apply for a patent belongs to the entity. For any non-service invention-
creation, the right to apply for a patent belongs to the inventor or creator. After the
application is approved, if it was filed by an entity under ownership by the whole people,
the patent right shall be held by the entity; if it was filed by an entity under collective
ownership or by an individual, the patent right shall be owned by the entity or individual.
For a service invention-creation made by any staff member or worker of a foreign
enterprise, or of a Chinese-foreign joint venture enterprise, located in China, the right to
apply for a patent belongs to the enterprise. For any non-service invention-creation, the
right to apply for a patent belongs to the inventor or creator. After the application is
approved, the patent right shall be owned by the enterprise or the individual that applied
for it.
The owner of the patent right and the holder of the patent right are referred to as
"patentee".
Article 7. No entity or individual shall prevent the inventor or creator from filing an
application for a patent for a non-service invention-creation.
Article 8. For an invention-creation made in cooperation by two or more entities, or
made by an entity in execution of a commission for research or designing given to it by
another entity, the right to apply for a patent belongs, unless otherwise agreed upon, to
the entity which made, or to the entities which jointly made, the invention-creation. After
the application is approved, the patent right shall be owned or held by the entity or
entities that applied for it .
Article 9. Where two or more applicants file applications for patent for the identical
invention- creation, the patent right shall be granted to the applicant whose application
was filed first.
Article 10. The right to apply for a patent and the patent right may be assigned.
Any assignment, by an entity under ownership by the whole people, of the right to apply
for a patent, or of the patent right, must be approved by the competent authority at the
higher level.
Any assignment, by a Chinese entity or individual, of the right to apply for a patent, or of
the patent right, to a foreigner must be approved by the competent department concerned
of the State Council.
Where the right to apply for a patent or the patent right is assigned, the parties must
conclude a written contract, which will come into force after it is registered with and
announced by the Patent Office.
Article 11. After the grant of the patent right for an invention or utility model, except as
otherwise provided for in the law, no entity or individual may, without the authorization
of the patentee, make, use or sell the patented product, or use the patented process and
use or sell the product directly obtained by the patented process, for production or
business purposes.
After the grant of the patent right for a design, no entity or individual may, without the
authorization of the patentee, make or sell the product, incorporating its or his patented
design, for production or business purposes.
After the grant of the patent right, except as otherwise provided for in the law, the
patentee has the right to prevent any other person from importing, without its or his
authorization, the patented product, or the product directly obtained by its or his patented
process, for the uses mentioned in the preceding two paragraphs.
Article 12. Any entity or individual exploiting the patent of another must, except as
provided for in Article 14 of this Law, conclude with the patentee a written license
contract for exploitation and pay the patentee a fee for the exploitation of the patent. The
licensee has no right to authorize any entity or individual, other than that referred to in
the contract for exploitation, to exploit the patent.
Article 13. After the publication of the application for a patent for invention, the
applicant may require the entity or individual exploiting the invention to pay an
appropriate fee.
Article 14. The competent departments concerned of the State Council and the people's
governments of provinces, autonomous regions or municipalities directly under the
Central Government have the power to decide, in accordance with the State plan, that any
entity under ownership by the whole people that is within their system or directly under
their administration and that holds the patent right to an important invention-creation is to
allow designated entities to exploit that invention- creation; and the exploiting entity
shall, according to the prescriptions of the State, pay a fee for exploitation to the entity
holding the patent right.
Any patent of a Chinese individual or entity under collective ownership, which is of great
significance to the interests of the State or to the public interest and is in need of
spreading and application, may, after approval by the State Council at the solicitation of
its competent department concerned, be treated alike by making reference to the
provisions of the preceding paragraph.
Article 15. The patentee has the right to affix a patent marking and to indicate the
number of the patent on the patented product or on the packing of that product.
Article 16. The entity owning or holding the patent right shall award to the inventor or
creator of a service invention-creation a reward and, upon exploitation of the patented
invention-creation, shall award to the inventor or creator a reward based on the extent of
spreading and application and the economic benefits yielded.
Article 17. The inventor or creator has the right to be named as such in the patent
document.
Article 18. Where any foreigner, foreign enterprise or other foreign organization having
no habitual residence or business office in China files an application for a patent in
China, the application shall be treated under this Law in accordance with any agreement
concluded between the country to which the applicant belongs and China, or in
accordance with any international treaty to which both countries are party, or on the basis
of the principle of reciprocity.
Article 19. Where any foreigner, foreign enterprise or other foreign organization having
no habitual residence or business office in China applies for a patent, or has other patent
matters to attend to, in China, he or it shall appoint a patent agency designated by the
State Council of the People's Republic of China to act as his or its agent.
Where any Chinese entity or individual applies for a patent or has other patent matters to
attend to in the country, it or he may appoint a patent agency to act as its or his agent.
Article 20. Where any Chinese entity or individual intends to file an application in a
foreign country for a patent for invention-creation made in the country, it or he shall file
first an application for patent with the Patent Office and, with the sanction of the
competent department concerned of the State Council, shall appoint a patent agency
designated by the State Council to act as its or his agent.
Article 21. Until the publication or announcement of the application for a patent, staff
members of the Patent Office and persons involved have the duty to keep its content
secret.
CHAPTER II
REQUIREMENTS FOR GRANT OF PATENT RIGHT
Article 22. Any invention or utility model for which patent right may be granted must
possess novelty, inventiveness and practical applicability.
Novelty means that, before the date of filing, no identical invention or utility model has
been publicly disclosed in publications in the country or abroad or has been publicly used
or made known to the public by any other means in the country, nor has any other person
filed previously with the Patent Office an application which described the identical
invention or utility model and was published after the said date of filing.
Inventiveness means that, as compared with the technology existing before the date of
filing the invention has prominent substantive features and represents a notable progress
and that the utility model has substantive features and represents progress.
Practical applicability means that the invention or utility model can be made or used and
can produce effective results.
Article 23. Any design for which patent right may be granted must not be identical with
or similar to any design which, before the date of filing, has been publicly disclosed in
publications in the country or abroad or has been publicly used in the country.
Article 24. An invention-creation for which a patent is applied for does not lose its
novelty where, within six months before the date of filing, one of the following events
occurred:
(1)where it was first exhibited at an international exhibition sponsored or recognized by
the Chinese Government;
(2)where it was first made public at a prescribed academic or technological meeting;
(3)where it was disclosed by any person without the consent of the applicant.
Article 25. For any of the following, no patent right shall be granted:
(1)scientific discoveries;
(2)rules and methods for mental activities;
(3)methods for the diagnosis or for the treatment of diseases;
(4)animal and plant varieties;
(5)substances obtained by means of nuclear transformation.
For processes used in producing products referred to in items (4) of the preceding
paragraph, patent right may be granted in accordance with the provisions of this Law. ¡¡¡¡
IT-enabled International Promotion Of Technology
Transfer in the Enterprise Resource Planning Space
Nazmun Naha and Vesa Savolainen
Department of Computer Science and Information Systems
University of Jyväskylä
P.O. Box 35
FIN-40351 Jyväskylä
Finland
E-mails: naznaha@cc.jyu.fi, vesa@cs.jyu.fi
Abstract: Too many companies fail in utilizing modern information technology (IT) tools for the international promotion (IP) of technology
transfer. In fact, there exists no framework for, and nearly no empirical research of, the use of computer-based media for the IP of technology
transfer. However, effective marketing systems are essential for making sales and surviving in the current intensely competitive global
marketplace. It is our aim to study how hi-tech companies can contribute to the international electronic promotion (IEP) process and to develop
an advanced IEP methodology which integrates ERP (enterprise resource planning) and other new ITs. This IEP methodology is based on
several case studies of the innovative IP approach currently used by hi-tech companies in their technology transfer driven internationalization
process. It is also based on an analysis of the characteristics of the technology, a literature review, interviews of practitioners, and interviews of
researchers in an international technology transfer (ITT) research group. Our methodology provides several benefits to companies, e.g.
customers‘ increased awareness of them and their market offerings on the foreign markets, rapid generation of leads, faster and easier sales,
decrease in promotional expenses, new market openings, and internationalization through IT-enabled promotion of ITT.
Keywords: International Technology Transfer, Information Technology, Enterprise Resource Planning, Conventional International Promotion
Approach, International Electronic Promotion Approach, Global Electronic Environment, Internationalization, Hi-Tech Companies
Nazmun Nahar, MSc. and Licentiate of Economics, has been a full time researcher at the Department of Computer Science and Information
Systems at the University of Jyväskylä since 1997. She has been actively involved in examining the possibilities of new information and
communication technologies in the globalization of businesses and suggesting strategies to implement in organizations. Her present and earlier
research interests include also IT-supported globalization of enterprises, international technology transfer, systems development for global
electronic commerce, Web based groupware, enterprise resource planning and Web integrated workflow technology. She has presented and
published several scientific papers in the proceedings of leading international scientific conferences on Information Systems and Information
Technology in the USA, Canada, the UK and other European countries as well as written chapters in international books.
Vesa Savolainen was born in 1944. He received his MSc. in 1971, Ph. Lic. in 1973 and Ph.D in 1977 in Computer Science from the University
of Tampere. He became Associate Professor at Vaasa School of Economics in 1980. He worked as a Professor of Applied Mathematics in 1982
and a Professor of Computer Science and Information System Science at the University of Jyväskylä most of the period 1981-1999. He has
been the Head of the Department of Computer Science and Information Systems in four periods. In 1998 he became Professor of Computer
Science and in 1999 Professor of Information System Science. He received Senior Scientists' Grant from the Academy of Finland in 1983,
1987 and 1991-1992 and a corresponding Academy post in 1997-1998. He participated in the ESPRIT Project OSSAD, Office Support
Systems Analysis and Design, in 1986-1989, and ESPRIT Project HECTOR, Harmonized European Concepts and Tools for Organizational
Information Systems, in 1989-1990. He is Senior Member of IEEE and Member of ACM and IFIP WG 8.4 (Office Systems) and WG 8.3
(Decision Support Systems). He has authored over 160 scientific papers, most of them international, reviewed and referred, on information
systems, and also 3 books: Perspectives of Information Systems (Springer, 1999), Information Resource Management in Organizations (1987)
and Foundations and Algorithms of Graph Theory (1978).
1. Background, Research Motivation and Research Problem
Currently, hi-tech companies‘ technology life cycles are rapidly shortening, because these companies invest
a relatively high percentage of their turnover in R&D on a continuous basis and other factors. Companies
are rapidly introducing more new products and services to Western markets.
Markets in the industrialized countries are saturated and competitive. Competition is intensifying further
due to liberalization of trade through GATT agreements, evolvement of new global companies from new
industrialized countries and other factors. Consequently, companies are now facing competition on their
domestic markets and are going to face more intense competition in the future. However, hi-tech companies
are important for the economy as they create innovations and provide jobs for many people [18, 19, 20].
In the current era of liberalization, deregulation and globalization, hi-tech companies from advanced
industrialized countries have the possibilities to enter growing affluent markets of newly industrialized
countries and developing countries or to seek low cost skilled labor, raw material, and other production
inputs through technology transfer. According to Nahar [16, 18] technology transfer refers to a process of
various activities where the technology is communicated and transmitted by the supplier to the receiver
across the national border to enhance the capability of the receiver. Technology refers to applied scientific
knowledge and skills, which facilitate the manufacturing of products or producing of the services.
Increasingly, international technology transfer (ITT) is becoming very important since successful ITT can
offer several benefits to the technology supplier, technology supplying country, technology receiver and
technology receiving country.
Through the transfer of technology, a supplier can obtain access to foreign markets and thereby overcome
market entry barriers, extend technology life cycle, recover R&D expenses, utilize irrelevant technologies
which have accidentally developed from R&D, acquire knowledge of foreign markets, create profits and
achieve long-term growth and survival [1, 3, 16, 18, 19]. ITT allows companies more flexibility in utilizing
their technological strengths and dealing with increasingly competitive and changing international business
environment.
Effective international promotion (IP) is essential in order to inform prospective foreign recipients of the
availability of the technology, and to persuade them to opt for the technology-marketer‘s offer. IP includes
the techniques for communication with overseas customers and potential customers in order to facilitate the
sale of products and/or services and/or technology for technology transfer. Due to complex and intangible
nature of the technology, different needs of prospective recipients, a very high amount of customized
information should be delivered to the prospective technology recipients. It is very expensive to make IP to
deliver a huge amount of information to prospective recipients as it is quite slow as well. In addition,
traditional tools are not interactive to deliver customized information. Consequently, effective IP using
conventional promotional tools is expensive and not affordable for several companies. Therefore, most of
the companies cannot participate in promotion of ITT and are unable to obtain the benefits of successful
ITT.
Enterprise resource planning (ERP) and other new information technologies (ITs) such as agent
technology, multimedia-Web, Extranet, conferencing technology, etc. could be useful for promoting
technology globally.
More and more leading companies around the world are adopting ERP [6, 8] due to the high benefits from
successful implementation of ERP as well as to various factors positively influencing the adoption of ERP.
ERP systems give them the opportunity to redesign, improve or standardize their business processes. Some
companies are able to launch a new business model or business stream in a shorter span of time. Some
companies have benefited significantly in terms of operational efficiencies and effectiveness. They also
have the ability to put data into the managers‘ hands so that they have the information necessary for making
real-time business decisions more accurately. This enables them to react more quickly to rapidly changing
business environment, resulting in a more flexible operation. It increases the productivity of technical
support staff, facilitates cost savings in salary administration. It facilitates order entry and shipping,
increase in sales without increasing the number of manufacturing workers. It served to avoid high
upgrading costs for Y2K and also doing the same with the Euro.
However, companies face various challenges in their implementation of ERP systems [6, 8] such However,
companies face various challenges in their implementation of ERP systems [6, 8] such as changing existing
applications in the company, changing the mind-set from the traditional way of doing business, finding
qualified ERP people and so on. Companies are overcoming the challenges by adopting various strategies,
such as the participation of end users in the project, effective management support, effective change
management, giving specialized training to both technical people and business users and so on.
It has been proven that successful implementation of ERP systems can improve the organization and human
resource management, business planning and controlling, procurement, production, inventory management,
order processing, accounting and capital asset management [6]. But no research has been undertaken how
ERP could improve IP for TT, and therefore the current study is important.
Also the advent of an interactive multimedia-Web, conferencing technology, and other IT tools and
services, explosive global growth of Internet; improvement of digitization technology for the integration of
picture, voice, data and text; and an increasingly more powerful and broad range of ITs offered at lower
costs [16, 18] could revolutionize the ways technology is promoted globally. The Internet has
revolutionized the ways products and services are marketed [5, 9, 10]. The Internet can be useful for
performing international marketing [23]. The Internet and Extranet can eliminate barriers of distance, time
and geography and can facilitate worldwide communication, coordination and collaboration [17, 18]. The
worldwide explosive growth of the Internet is increasing the potential of international electronic promotion
(IEP).
IEP has the ability to reach the enterprise‘s customers on a global scale, and it could be effective and
inexpensive. IEP refers to promotion through computer-based media utilizing new ITs in the global
electronic environment. The innovative uses of a variety of IT tools in IP may provide benefits to
companies and facilitate technology transfer.
Unfortunately, for several reasons, companies are failing to utilize these IT tools for the international
promotion of technology transfer. Firstly, there is currently no existing framework for the use of computer-
based media for the IP of technology transfer. There has also been a limited amount of empirical research
undertaken to determine how companies can execute IEP for technology transfer. Secondly, limited
knowledge and experience in the use of IT tools for IP, difficulties in building trust, the different cultures of
the Internet community, rapid changes in ITs and other factors are making it very difficult for companies to
use IT tools successfully for IP. This research has been undertaken to develop the framework for IEP of
technology transfer that can successfully facilitate international promotion, contribute new knowledge and
make advancements on existing knowledge of IEP.
The main research problem of this study is to establish how hi-tech companies can execute international
promotion more effectively and efficiently using ITs. This study focuses on the promotion of market
offerings. To maintain a clear focus in this study, the following boundaries have been set:
The study deals only with IT-enabled international promotion of market offerings.
The investigation has been restricted here to those ITs, which have the potential to make a large
contribution to the IEP process.
This paper consists of nine major Sections. Section 2 presents the characteristics of technology. Section 3
describes the conventional promotional approach and its tools. Section 4 presents the research framework,
which describes the IT tools that could make IP cost efficient for technology transfer. The methodology
applied in this research is described in Section 5. Case companies are examined in Section 6. They are an
electricity producer, a paper machine manufacturer, a paper and pulp technology supplier and an elevator-
escalator manufacturer. In this Section, we examine how hi-tech companies are conducting international
promotion for their technology transfer endeavors. Section 7 develops an IT-enabled IP process model for
technology transfer in the context of hi-tech companies. The implementations of this model and the
substitute IT tools of conventional promotion approach are also described in this Section. Section 8
presents the causes of failure in IEP. In Section 9, conclusions are drawn and implications of the research
are discussed.
2. Characteristics of Technology
Analysis of the characteristics of transferred technology can lead us to find out how far information
technologies can be utilized to promote ITT.
On the basis of various scientists‘ [1, 4, 11, 24] views and of our research on technology transfer, this study
conceptualizes technology as systematic applied knowledge, skills and competencies of individual, team or
organization that enable designing products and/or services innovatively, producing them efficiently,
bringing products and/or services to market quickly, solving practical problems and so on.
Technology is mostly intangible in nature from the perspective of technology transfer. It is mainly
embodied in design, documents, and in human being as know-how. Usually technology is dynamic and
complex. A complex technology requires greater efforts and resources, and longer time to promote
effectively by utilizing traditional promotional tools.
ITT is a complex process of several interlinked and overlapping phases. Usually through the ITT process,
the technology supplier interacts with the technology receiver, information flows in both directions, the
technology is transferred to the receiver using various training methods [18]. The technology supplier
transfers knowledge and skills to the people of the technology receiving company. People from both sides
need to maintain close interrelationships and two-way communication.
IT tools are interactive and capable of delivering a very high amount of customized information faster and
cheaper than traditional promotional tools. IT tools could be useful for promoting complex technology
globally.
3. Conventional Promotional Approach and Tools
A review of the current literature and empirical studies suggest that companies in the industrialized
countries are commonly utilizing some of the following conventional promotional tools for
internationalization through technology transfer (see Figure 1). The companies use these tools to create
awareness of market offerings, provide information about market offerings, influence customer‘s buying
decision and so on.
The existing literature review [7, 17] reveals that the following conventional promotional tools are used by
companies to promote their market offerings on foreign markets.
3.1 International Direct Mail
Direct mail campaigns require extensive market research, in-depth planning of material and highly
systematic mailing [7]. Generally, it is difficult to obtain the required information for direct mail if the
target customers are outside the North American and Western European markets. It is very expensive to
send a huge amount of technology related information to several prospective technology recipients from
foreign countries.
3.2 Trade Show
Figure 1. Conventional International Promotion Approach of TT
At a trade show, hundreds or even thousands of enterprises from different countries exhibit their market
offerings. Participation in trade shows requires a lot of logistical and other planning, for example, shipping
products to the show, unpacking and installation efforts. After the show, the stands have to be dismantled,
packed and return freight arrangements should be made. These are very expensive and time consuming and
in addition, specialized staff are needed to obtain benefits from the trade show. Technology is complex, one
person or few people cannot provide all the information to the inquiries of the trade show visitors. It is not
feasible for the technology supplier to send a group of people to the trade show, who combined can answer
to the questions of the trade show visitors.
3.3 International Advertising
The companies identify the target audience and print advertisements in business and trade journals for a set
fee. To get benefits from printed advertisements, large financial resources are required, which is generally
beyond what companies can afford. It is almost impossible to deliver a very high amount of technology
related information to several prospective technology recipients to foreign countries through international
advertising due to the limited capacity of traditional media.
3.4 Public Relations
Public relations are the non-personal, free favorable representations of market offerings. Public relations
build high credibility, but it requires specialized expertise, which few companies possess or can afford.
Public relations may not be suitable to deliver a very large amount of technology related information.
3.5 Trade Mission
A trade mission is a planned visit of a group to potential buyers abroad under the supervision of an
experienced leader. The businessman can identify customer needs and preferences, obtain an understanding
of the different culture and view the country as a possible market for his/her enterprise. However,
participating in trade missions is both expensive and time consuming.
3.6 International Personal Selling
In this case, the sales person travels to a foreign country and presents market offerings to the potential
customer in order to make sales. However, personal selling is very expensive, time consuming and requires
high motivation and skills from the sales person. The sales person should have a high ability to adapt to the
customers and the situation. S/he should have an in-depth knowledge of the different aspects of the foreign
culture, including aesthetics, religion, education, language, social organization and political factors.
This study determines that conventional promotional tools have limited capacity to deliver a very high
amount of technology related information to several prospective technology recipients in foreign countries,
they are not interactive to deliver customized information, and they are very expensive if to make IP deliver
a huge amount of information to prospective recipients. They are also very slow when compared to
electronic/online promotion.
4. Research Framework
This study focuses mainly on the key points of major IT tools that could make IP cost efficient. Our
investigation has been restricted here to those that have the potential to make large contributions to IP.
Currently search engine submission of Web pages, solicited e-mail and promotion of the Web page in
traditional media are the most effective promotional methods for generating sales and banner advertisement
is useful for developing brand names. There are several other high-potential electronic tools as well.
4.1 E-mail
E-mail is the most commonly used Internet tool, allowing communication with people around the world at
very low cost. Communicating via e-mail is one of the most important marketing tools used in international
business today [14]. It can be used for providing information on an enterprise‘s market offerings as well as
for receiving customer feedback, orders, etc. E-mail should be used cautiously with purpose in order to
achieve benefits. Enterprises should not abuse e-mail, as it contradicts with the Internet culture.
Through market research enterprises could identify their potential customers. Enterprises could then
delicately present special benefits to those prospective customers who are willing to receive the enterprises‘
e-mail. Enterprises could effectively communicate with those who respond positively. Effective and
intensive e-mail communication could make foreign customers aware of market offerings, deliver
information, make audience feel comfortable with market offerings, generate sales and perform follow up
services.
4.2 Video Mail
Modern ITs allow users to produce their own video mail. Short digital movies with audio in ultra-
compressed files can be transferred with e-mail messages through the Internet around the world. They work
with all commonly used e-mail software. They enable the creation of personalized e-mail messages that
enhance the quality of business communications. Enterprises could send video clips about a new market
offering to prospective foreign customers. They could record and send business proposals and presentations
in multimedia format, which is better than ordinary mail and e-mail.
4.3 Enterprise Resource Planning (ERP)
An enterprise resource planning system is a packaged business software system that lets a company
automate and integrate the majority of its business processes, share common data and practices across the
enterprise and produce and access information in a real-time environment.
An ERP system may include software for human resources, purchasing, transportation, warehousing,
manufacturing, order entry, accounts receivable, account payable, etc. ERP systems can improve
organization and human resource management, business planning and controlling, procurement,
production, inventory management, order processing, accounting and capital asset management [6].
ERP enables business processes to be restructured. ERP could also make a high contribution to the
international promotion process by producing catalogues and letting outsiders see them through the
Internet, letting the customers check the inventory through the Internet, and by order processing. Customers
around the world could go through the catalogue 24 hours a day, check the available inventory in real time,
and process the order instantly. This would be of huge convenience to customers. The company could reach
global customers at a low cost, offer its market offerings and inventory 24 hours a day, and make the sales
process automated and highly cost efficient.
4.4 Multimedia Web
A pervasive Internet tool which allows multimedia presentations, indexes, and text-search capacities. A
company has the opportunity to simultaneously reach technology recipients around the world at minimum
cost through its multilingual Web pages [14]. Technology recipients from developing countries in Asia,
South and Central America and Africa can be reached using English, Spanish and French language Web
pages. Enterprises in these countries are more willing to visit their own language Web sites and get
information in their local language. Without translation, technology recipients from non-English speaking
origins may avoid a given site. The most important information in the Web pages could be translated into
those languages whose markets have been identified as important. Web sites should provide ease of
navigation and access to an enterprise‘s market offerings, relevant and adequate information on solutions to
technology problems for the technology recipients. The language content and visuality can be developed
according to the local culture.
When potential customers visit the Web site, customers could be allowed to make inquiries in their own
languages, as most of these Web visitors do not write English well. Automatic translator software could
translate the inquiries into English, and a quick reply can be given. Automatic translation is not as good as
that done by a professional translator, but it serves its purpose.
The detailed Web page could be in English; there could be information on the market offering and its
benefits, risk free buying, an order form or technology requirements form, a feedback form, the e-mail
address, telephone, and fax number of the enterprise. The Web should be updated regularly and the
information organized for easy location. Web should be integrated with enterprise‘s marketing strategy and
overall business strategy [14]. A Web site which contains high quality information relevant to technology
transfer from industrialized countries to developing countries could be developed. Such information is
important for the technology recipients.
There are millions of Web pages, and technology suppliers are failing to distinguish their Web sites from
these millions of Web pages and present them effectively. One solution is the submission of Web pages to
overseas search engines and indexes. In addition, the use of electronic promotional tools, for example,
software agents, mailing lists, electronic magazines and publishing the home page address in traditional
media will create awareness of the technology amongst technology recipients.
4.5 Extranet
The Extranet is an Intranet open to selective access from outside the organization. The Extranet represents
networks that extend beyond a single enterprise to multiple organizations that must collaborate,
communicate and exchange documents in order to achieve joint goals [2]. The Extranet‘s external features
allow enterprises to reach current and potential global customers. It facilitates better access to information
on market offerings, better and quicker solutions to problems through information and trouble- shooting. Its
graphic representation can allow users to understand how market offerings can provide high benefits to
customers. The Extranet can also represent the features and benefits of new market offerings to customers.
Especially, the existing customers can participate in conferencing in the Extranet where security and
privacy are ensured.
4.6 Electronic Press Release (EPR)
The Internet and video mail have enabled easier and faster distribution of enterprises‘ press releases to Web
magazines, newsgroups, archives, radio, television, newspapers and magazines around the world and lists
of places for target distribution are available on the Web.
4.7 Electronic Exhibition/Virtual Trade Fair
The electronic exhibition is a new innovation in the use of Web technology and other ITs for international
trade fairs, where thousands of enterprises from different countries can exhibit market offerings. Exhibitors
can reach to their target foreign clients 24 hours per day all year, providing new business opportunities
which are not possible through the conventional trade fair. In a virtual exhibition, needs of travelling,
shipping goods, customs clearance, installing the wares at the exhibition site, dismantling, repackaging, and
reshipping are eliminated, thus the associated problems are avoided. An electronic exhibition is more time
and cost efficient than the traditional exhibition.
4.8 Teleconferencing
Teleconferencing allows a company to engage in real-time chat or asynchronous, threaded discussions with
potential and present customers around the world [19]. This adds value to the company‘s market offerings,
boosts its credibility and visibility, and enhances customer loyalty. To launch teleconferencing requires
moderate hardware and software and visitors need only their regular browsers.
4.9 Videoconferencing
Videoconferencing provides an enterprise with the capacity to demonstrate its market offerings and
stimulate the desire for quick purchasing; to hold remote business meetings; and to rapidly solve the
problems of potential and present customers around the world [14, 15, 22]. The major strength of
videoconferencing is the ability to give an adequate amount of effective information in a very short period
of time. An enterprise can use videoconferencing to collaborate with customers globally. Currently video
conferencing is not widely used due to limited bandwidth and high price of high quality video conferencing
hard wares and software.
4.10 Banner Advertising
A banner is a digital image of an enterprise‘s market offerings on the Internet. Banners can target global
customers by geographic location, domain (com, gov, edu, etc.), operating system, generate leads, and
build enterprise brands. When a customer clicks on a banner s/he is at once on the enterprise‘s Web site.
Creative and attractive presentations and frequent changes are essential in order to increase the traffic flow.
The enterprise should translate the text of banner advertisements into the local languages of the targeted
countries in order to increase click-through rates.
The weakness of banner advertising is the huge budget that is required in order to make a banner campaign
effective. In order to avoid the problem of large budgets for banners, banner exchanges could be arranged
with well-promoted and highly popular sites
There are other IT tools such as DVD, Internet robot, IRC, MUD, mailing list, newsgroups, e-digest, e-
zine, autoresponders and signature files that could improve the IP process.
5. Field Study
5.1 Research Design and Method
The goal of our field study was to identify how hi-tech companies conduct international promotion of their
ITT endeavors. The research framework and relevant literature review guided us in formulating the field
study.
The qualitative case study approach is an appropriate method when little is known about a particular
phenomenon with the objective of identifying theoretical constructs and developing theory. This research
uses a multiple-case [25] design in order to ensure that the generalization of the emerging theory extends
beyond that offered by a single case. Single-case research imposes limitations and is subject to possible
bias. Multiple cases increase the potential for external validity and alert the researcher to bias, such as
misjudging the representation of a single event.
The study focused on hi-tech companies in Finland which have transferred technology to developing
countries. The case companies were selected from different industrial sectors and organizations. The
selection of case companies was determined by the following considerations: suppliers of technologies who
are involved in hi-tech areas and have transferred technology to developing countries; those companies
who were knowledgeable and were willing to share their knowledge, opinions and insights.
The informants for this study were those who were directly involved in technology management and
persons involved in the actual process of transferring technology. The interviews were conducted in two
stages. The initial interviews were open-ended, allowing free description of the interviewee‘s area of
responsibility and relationship to the technology transferred. The questions asked included:
1. Which conventional international promotion (IP) tools (i.e. direct mail, international advertising,
trade mission, etc.) are the companies currently using to promote ITT and what are their functions,
advantages and disadvantages?
2. Which ITs (i.e. WWW, autoresponder, signature file, mailing list, newsgroup, etc.) can make high
contributions to IP, what are their strengths and weaknesses; how should the weaknesses be
avoided?
3. What are the causes of failure in electronic IP?
4. What constitutes an effective and efficient IT-enabled international promotion process model and
how should it be implemented?
5. What strategies should companies adopt to obtain great benefits from electronic IP?
This gave us the necessary data for designing a more focused interview guide at the second stage. Each
interview took about two hours. At least six people were interviewed from each company, and in some
companies the number of interviews was more than ten.
Data reduction of all interviews started immediately after the transcription of the tape-recorded interviews;
this helped to bring the raw data into a summarized and thus manageable form. The transcription was
checked and corrected. During the second stage of the interview, comparisons were made at various levels,
for example: comparisons between informants at the company level, and comparisons between companies‘
experience.
The guidelines on qualitative data analysis presented in the literature [12, 13, 21] were helpful in analyzing
the research data. This study followed the following steps suggested by Miles and Huberman [13]: data
reduction; data display; and conclusion drawing or verification.
The resulting case report was classified into number of themes by using the research framework. These
themes were summarized into a pattern by using a content analysis method [13, 21].
In this research, several measures were applied in the following ways: question guides were verified by
case companies and various experts; data verification was attempted by putting the same questions to
several employees in one organization, as well as by collecting secondary data for the same questions and
verifying them.
6. Case Companies
6.1 An Electricity Producer
In this study, the real names of the companies have been altered for reasons of confidentiality.
A large Finnish Energy Company (FEC) relentlessly upgrades its technology through intensive R&D
efforts and has developed technology for operation and maintenance (O&M) of power stations. It uses
advanced information technology in its R&D efforts and other aspects of business operations. By
continually upgrading its technology, the company stays ahead of competitors.
It has transferred O&M technology to several advanced industrialized countries as well as developing
countries. The company uses ERP, Web, e-mail, videoconferencing technology and other ITs to execute its
global electronic marketing communication. By investigating internal databases, and energy related market
databases (external), and CD with market data, the company identified South East Asia as an attractive
market. Due to deregulation and privatization, the demand for O&M technology has increased in South
East Asian (SEA) countries and other parts of the world. FEC made a feasibility study of the potential in
SEA markets and wanted to enter SEA markets by transferring its O&M technology.
FEC used company-related databases to investigate prospective technology recipients. It identified a
prospective technology recipient with high financial solvency and made preliminary negotiations by
telephone, fax and face-to-face meetings. Finally, it negotiated a technology transfer contract with a
technology recipient in Malaysia and made several agreements with the recipient, one of which specifies
FEC‘s sole and total responsibility for managing the operation of the power plant. Due to the
underdevelopment of IT in the Malaysian company at that time, FEC has not been able to use IT to the
fullest potential for electronic market communication.
It supplied O&M technology which combines information systems, procedures and problem-solving
expertise. The technology is unique, complex and partially legally protected. Some parts of the technology
are tacit, not completely documented or codified and not legally protected.
The technology was transmitted through the provision of documents and intensive training. In Finland it
provided for theoretical training supported by simulators to a few of the employees from the technology
recipient. In addition, Finnish experts were sent to Malaysia to provide training. The plant came into
operation at the beginning of 1995. The plant sells electricity to private companies. Transfer of technology
has offered the recipient power, cost efficiency in operation and maintenance, safety and a minimum risk of
unexpected power plant failures.
The survival and profitability of the technology receiving enterprise is dependent on FEC‘s technology.
Through intensive R&D, FEC remains at the forefront in technological development. It continuously
improves the quality of the services that it offers to the technology recipients.
Through the continuous development of technology, the creation of highly advanced performance-
monitoring systems, and participation in operations, FEC has been able to make the ITT effective.
Furthermore, the experience of the technology supplier and the quality of technical and management
education for recipient employees has made the project successful.
Currently, FEC is using several IT tools for global marketing communications such as ERP, company
databases, CD-ROM, e-mail, the Internet, teleconferencing, mailing lists and newsgroups.
6.2 A Paper Machine Manufacturer
A Finnish Paper Machine Manufacturer‘s (FPMM) heavy, continuous investment in R&D has made it one
of the world leaders in paper machine manufacturing technology. The company has paper machine
production plants in Finland and has transferred technology to advanced industrialized countries as well as
to developing countries.
Paper machine manufacturing is a mature industry in the industrialized countries. The company uses ERP,
Web, e-mail, CD-ROM, newsgroup and videoconferencing technology to execute its global electronic
marketing communication. By investigating internal databases, and market databases (external), and CD
with market data, the company identified China as an attractive market. Due to economic reform, the
Chinese economy has been performing quite well and China is a huge, potential market for small and
medium-sized paper machines. However, small and medium-sized paper machines are not manufactured in
the industrialized countries because of the diminishing demand. FPMM wanted access to the Chinese
market in order to satisfy local demands, utilize cheaper inputs and export to nearby markets.
FPMM utilized company-related databases in order to identify prospective technology recipients. It
identified and met a Chinese manufacturer of paper machines in 1987, made a feasibility study and began
negotiations. The company used telephone, fax and face-to-face meetings for the preliminary negotiations.
Finally, the company established a JV with the Chinese partner in 1989. The Chinese partner has long been
involved in paper machine manufacturing.
FPMM carefully selected the technology to be transferred considering the needs of the technology recipient
and prevailing conditions in China. It supplied paper machine manufacturing technology, quality control
know-how, management know-how and marketing know-how.
The paper manufacturing technology that FPMM transferred to China had matured in Finland, but was very
suitable for the Chinese market. FPMM adapted the technology. A very large percentage of the technology
was tacit.
FPMM provided training by Finnish experts in technical, managerial and marketing areas to local Chinese
employees in China. Chinese employees also traveled to Finland for training in the Finnish business style.
Technology was transmitted through the provision of documents and intensive training. Weak technology
protection laws, low standards in the existing Chinese factory, poorly trained human resources, and the
absence of good manufacturing practices all contributed to slow down technology transfer.
FPMM renegotiated the technology transfer agreement, and increased its share and control in the
technology receiving company in August 1995. FPMM has put more efforts into modifying and upgrading
the Chinese factory through rapid technology transfer.
FPMM is also injecting more advanced technology and upgrading the technology infrastructure on a
continuous basis. The Chinese venture is very much dependent on FPMM‘s advanced technology.
Technology transfer required more resources and time than both of the parties could anticipate. However,
quality of production has been achieved and the productivity of the workers is steadily increasing. The
strong commitment on the part of the technology supplier, the high demand for paper machines and low
input costs made the project a success.
Company ERP system, Web, internal database, CD-ROM, e-mail, Internet, teleconferencing, and
newsgroups are some of the ways in which the company currently promotes on the global marketplace.
6.3 Paper and Pulp Technology Supplier
This Finnish company is one of the global leaders in servicing the pulp and paper industry. It has
transferred pulp and paper industry service technology to several advanced industrialized countries, such as
the USA, Germany, France, and Japan, as well as to developing countries.
The company sustains its technology leadership position through heavy investment in R&D. The company
has a very strong presence on western markets.
The company uses ERP, Web, e-mail, CD-ROM, database, mailing list, newsgroup and videoconferencing
technology to execute its global electronic marketing communication. By investigating internal databases,
paper industry-related market databases (external), and CD with market data, the company identified South
East Asia (SEA) as an attractive market. In order to satisfy local demand in SEA and to strengthen its
position on the marketplace, the company wanted to establish a full-service technology center at a
favorable location in SEA. Through a feasibility study, Thailand was identified as the most favorable
location.
The company negotiated with a local authority in the region by exhibiting the importance of the technology
for that area and establishing its own subsidiary in 1996. Expatriates from Finland are employed in the
local organization.
The technologies transferred from Finland were specifically for paper machine roll coverings and coatings,
engineering know-how and business control systems and practices. These are cutting-edge technologies,
and were adapted according to the needs of the SEA market. Technology was partially legally protected
and a very high percentage of the technologies were tacit and difficult to document.
The technology was transmitted through the provision of documents and intensive training. The Finnish
company trained mainly managers, engineers and shop floor technicians. At the first stage, the training was
carried out in Finland and the USA. Later, the Finnish company sent four experts to provide training in
technical, managerial and marketing areas to local Thai employees. The expatriate managers also provide
training to their subordinates. The expatriates‘ responsibilities are for marketing/sales/customer support and
manufacturing operations. The plant provides specialized technical support, roll services and spare parts for
the pulp and paper industry.
The low standard of education, lack of infrastructure, poor data communication skills, cultural differences
and currency devaluation have made technology transfer slow.
Local consulting companies were utilized, with help from the Finnish Embassy in Thailand. The
technology supplier is continuously transferring technology that is more advanced to its SEA site. This
ensures quality.
The continual upgrading of technology, high performance technology and strong commitment from the
technology supplier made the project a success.
6.4 An Elevator and Escalator Manufacturer
The Finnish elevator and escalator manufacturer (FEEM) is one of the world leaders in manufacturing,
installation, maintenance and modernization of elevators and escalators. It relentlessly upgrades its
technology through high investment in R&D.
It has transferred technology to Western Europe, North America as well as to developing countries around
the world. Mainly, due to the maturing of its traditional markets in Western Europe and North America,
and increased global competition, FEEM was looking for opportunities on emerging markets.
The company uses ERP, Web, e-mail, database, mailing list, newsgroup and teleconferencing technology to
execute its global electronic marketing communication. By investigating company internal databases,
country and elevator-related market databases (external), and CD with market data, FEEM identified India
as an attractive market. The large size of the market, economic reform, and steady growth were the key
factors in identifying India as a prospective country for ITT. FEEM made feasibility studies to evaluate
technology transfer to India. It made a promotion targeted at India.
One prospective technology recipient from India made inquiries to FEEM through a Finnish industrial
development fund (FIDF). The Indian technology recipient had experience in the manufacture, erection and
maintenance of certain types of lifts. Increased competition on the Indian market, a shortage of funds, and
lack of R&D facilities and modern technology, motivated the prospective technology recipient to approach
FEEM.
Possession of critical technology gave FEEM bargaining power. In 1984, it negotiated a favorable
technology transfer contract. It used the telephone, fax, and express mail for preliminary negotiations, and
face-to-face meetings for final negotiation. Due to the underdevelopment of IT at that time in the Indian
company, FEC has not been able to use IT to the fullest potential to conduct primary market research.
It made a license and technical assistance agreement as well as other agreements, such as one on
confidentiality with individual employees in the JV. FEEM contributed technology and owned part of the
new company, while FIDF invested money in the new venture.
The technology was a combination of product know-how, process know-how, operation know-how and
management know-how. Some parts are legally protected through patents. FEEM arranged training for
Indian managers and engineers in Finland and other Western countries. They opened a new factory at the
beginning of 1987 in India. After receiving training, a few engineers left the company since they were
offered higher salaries by other companies. However, FEEM‘s technology is vast and involves such a wide
spectrum of activities that no single person can absorb it all. Due to a weak telecommunication
infrastructure, long distances and cultural differences, the technology transfer became slow.
The Indian partner managed the technology receiving organization, but ran into various difficulties from
the beginning and started lose money. FEEM took a long-term approach, and gradually FEEM bought all
the shares from the Indian partner. The situation did not improve dramatically, mainly due to market
uncertainty and conflicts with labor unions.
The technological contribution is a crucial element of the growth and profitability of the technology
receiving organization. The continuous absorption of advanced technology ensures a recipient‘s survival.
FEEM upgrades its technology effectively; participates in managerial and human resource training
operations; it uses incentives, and socialization to make ITT effective. Due to the very active role of FEEM,
reform of the Indian economy and improvement of certain laws and regulations, the ITT project has
become profitable.
The company has been using such tools as ERP, Web, e-mail, database, mailing list, newsgroup and
teleconferencing technology to perform global electronic communication.
A comparative case analysis was used in these four cases to identify and delineate the components of the
EIP process. The findings from the above cases were compared, patterns were identified and a preliminary
model for the EIP process was developed. Several iterations of the frameworks have been made in order to
refine and simplify them in this research project. Then the causes of failure of these cases were identified
by investigating several companies and recommendation strategies were proposed.
7. Developing A Model of An IT-enabled IP Process
A framework has been developed through several in-depth interviews of researchers in an ITT research
project group and ITT practitioners, through investigations of previous research on ITT and a literature
review in the field of ITT and IT, and by analysis of the case companies.
A review of current literature and empirical research suggest that IEP can radically change the way
international promotion is conducted and can create high impacts. This study contends that to make IP
more efficient and effective it should be considered and executed as a process. The study suggests that IP in
an electronic environment can be conceptualized as a process of six interlinked activities (see Figure 2)
which are usually executed in chronological order. Through the IEP process, the technology supplier
interacts with the technology receiver, information flows in both directions, money is paid to the supplier
and the "market offerings" are delivered from the technology supplier to the technology recipient.
The model is suitable for promoting market offerings (i.e. technology, equipment, component, part and
services) globally. According to the capacities of each tool, each has been placed in the box to which
category it belongs. For example, conferencing technologies have negotiation capabilities, while most of
the other tools do not have these capacities. The ITs can be implemented in two or more stages, and it will
be cheaper for the organization and easier to implement. At the first stage, it could utilize a few IT tools
and network services (Web, e-mail, signature file, mailing list, trade mailing list, newsgroup, electronic
magazine, electronic press release, teleconferencing). Before implementation of the first stage, the
enterprise should examine its scope (supplying capacity, availability of funds for promotion, etc.),
determine the goals of promotion, arrange e-mail translation, establish after-sales support in the languages
of the countries that they are targeting, arrange online international payment and international logistics
facilities, and develop the required information systems. At the beginning of the first stage the enterprise
could develop a multilingual Web site, including many pages in English and a few pages in Spanish and
French since many enterprises from developing countries are fluent in those languages. The enterprise
could then register its home page with foreign language search engines, indexes and make strategic links
with other home pages. These links would attract customers from target countries to Spanish, French and
English pages. More content could be added to each language on the site afterwards, and the site can
diversify into other languages for example, Chinese and Russian since many companies from developing
countries are also fluent in those languages.
While implementing the IEP stages, the person in charge of Web site promotion needs to be highly flexible
in terms of the various techniques which have been mentioned earlier. S/he needs to evaluate what works
best, and change the promotional plan accordingly. Testing and modification of the mix of promotional
tools are needed to maximize Web site traffic. More emphasis should be put on those that work best.
Empirical research suggests that the costs of implementing IEP are much lower than those for conventional
IP. Time scales for implementing the first stage may vary according to the scope of the promotion and its
goals. The first stage can be implemented within four months. The enterprise should train the marketer to
utilize the model effectively and efficiently as well as to make some adjustments according to the scope of
the enterprise and the particular market to be promoted.
Once the first stage has been implemented successfully it should then implement the other advanced IT
tools and network services (extranet, multimedia Web, electronic exhibition, Webcasting, banner
advertising, CD-ROM, DVD, software agent and video mail). In this Section, ITs for the first stage have
been integrated and systematically executed.
7.1 Making Foreign Customers Aware of Market Offerings
Through international market research the enterprise should identify potential technology recipients on the
target markets. It can send 2-3 e-mails one after another at intervals to identified enterprises with the goal
of generating technology licensing and/or other engagements. As not all enterprises in developing countries
are yet Internet oriented, the same message should be sent by fax or post to all prospective technology
recipients. High awareness can be created and market offerings and company information to target markets
can be spread by launching a highly informative and comprehensive catalogue by the ERP connected to the
Internet, posting problem solving messages to newsgroups and mailing lists, publishing articles in e-zines,
conducting teleconferencing, arranging public releases, posting buy/sell offers to trade sites on WWW and
trade mailing lists, adding signature files to messages and articles, putting classified advertisements on
network services and in e-zines, as well as adding Web site URL/e-mail addresses to conventional
advertisements and press releases, envelopes, letterheads, brochures, catalogues, and business cards.
7.2 Delivering Important Details of Market Offerings
A company can send additional details through e-mail as well as by normal mail to those prospective
customers who request more information. Customers can obtain detailed information on the benefits and
features of market offerings and the enterprise, etc. by forwarding e-mail to autoresponders and checking
the comprehensive catalogue produced by ERP at their convenience. In the case of very customized
information needs, the enterprise can participate in teleconferencing with potential customers.
7.3 Making An Audience Comfortable With Market Offerings
After completion of the second step, the enterprise can remind customers through e-mail of the unique
capacities for customer satisfaction provided by the enterprise‘s market offerings. At the same time, the
enterprise can participate in teleconferencing with potential customers and through questioning and
answering methods show that the offerings satisfy customers needs. After reading electronic press releases
the customer may have a more positive attitude towards the enterprise. Also the enterprise should register
itself with various organizations, for example with the World Trade Center, Dun and Bradstreet, etc. in
order to enhance its trust to foreign customers.
7.4 Confirmation of Market Offerings (Preferable in Open Competition Situations)
The enterprise can inform potential customers how the features of market offerings, price, delivery, etc. are
superior to competing market offerings through e-mail and teleconferencing.
Customers could check the catalogues produced by ERP, collect a huge amount of information, and check
the inventories and order process in real time. This would create huge convenience for the customers. The
company would reach global customers at low cost, offer its market offerings and inventories 24 hours a
day, and make the sales process automated and highly cost efficient.
7.5 Generating Sales From Market Offerings
A company can exhibit the unique benefits of its market offerings through e-mail and stimulate the desire
to buy, ask for the order through teleconferencing and also deal with customer objections and negotiate. If
the market offerings are complex e-mail and files transfer can be used heavily to conduct preliminary
negotiations very cost efficiently, which in turn shortens the negotiation period, reduces travelling needs as
well as reduces the negotiation expenses. Customers could process the order supported by the ERP at their
most convenient time.
7.6 Post Sales Communication
Following the sale, the enterprise should ask the buyer whether the market offerings have satisfied his
needs, whether any problem has arisen from the transaction, etc. through e-mail. This will increase the
peace of mind of the buyer and s/he can be sure that s/he made the right buying decision. Providing
additional information and problem solving advice by autoresponder and teleconferencing and supplying
customer after sales service-related information through ERP can increase customer loyalty. These follow
up communications will bring bigger business for the enterprise.
After evaluating the results of the first stage, the enterprise can start implement some of the tools such as
the Extranet, multimedia Web, electronic exhibition, Webcasting, banner-advertising, CD-ROM, DVD,
software agent and video mail. The enterprise can add extra pages in other languages (for example in
Chinese or Russian) and at the same time it can increase the content of earlier pages.
Launching a highly informative and rich multimedia Web and multimedia Webcasting, arranging electronic
exhibitions, and installing banner advertisements will increase awareness of the enterprise and its market
offerings. Customers can obtain in-depth information on market offerings from CD-ROM and DVD
delivered by the enterprise. Enterprises can provide additional information and presentations through video
mail. The enterprise can remind customers through video mail of the unique capacities for customer
satisfaction provided by the enterprise‘s market offerings.
Using video mail, a software agent, teleconferencing and videoconferencing technology the enterprise can
better inform the potential customers of the superior features, price, delivery, etc. in relation to the
competitors‘ market offerings. Video mail and videoconferencing could stimulate the desire to buy and
help in asking for quotations, dealing with customer objections, and negotiating. Videoconferencing, CD-
ROM, DVD and Extranet can also help in problem solving and provide additional information.
Substitute IT tools for conventional tools: This study and our long involvement in this research area have
helped us to develop Table 1. It exhibits the substitute IT tools for conventional tools.
Table 1. Substitute IT Tools for Conventional Tools
Conventional promotional tools IT tools for IEP
International direct mail E-mail, Video mail
Catalogue exhibition, Trade show, Enterprise resource planning (ERP), Multimedia
International advertising, Public relations Web, Banner advertising, Extranet, Electronic press
release (EPR), Electronic exhibition/virtual trade
fair
Trade mission, International personal selling Teleconferencing, Videoconferencing
8. Causes of Failure in International Electronic Promotion
Multimedia is different from conventional promotional media. Our empirical research suggests
that companies frequently fail in their international electronic promotion efforts for the following
reasons:
1. There is a lack of an effective online international promotional framework.
2. Online marketers cannot differentiate their Web existence among several million Web pages.
3. Due to a lack of visual contact, buyers cannot see the market offerings or the employees of the
supplier and cannot trust the supplier.
4. Enterprises do not put continuous efforts into online promotion. Web pages are made with the
hope that some out of several million Web surfers will visit the site.
5. They are not aware of the strengths and weaknesses as well as the strategies for successful use of
various new electronic promotional tools.
6. The Web site has not been effectively promoted in the right locations in the Internet where the
potential customers are. In addition, the site may not be sufficiently promoted off-line.
7. The message of the Web is unclear, words are not compelling enough to generate sales.
8. The site is too graphical and visitors are inconvenienced by the slowness of downloading.
9. The information on the Web may not be comprehensive for prospective customers.
10. Prospective customers may not reach the company due to invalid URLs, invalid e-mail addresses
and broken Web links.
The above list is not exhaustive. Different international promotional efforts face unique risks. The
promotional manager should investigate and identify risks related to his/her own international
promotional efforts beforehand.
9. Conclusions and Implications
This study introduces a new ERP-integrated IEP methodology, which can systematically guide
companies to execute international promotion and facilitate rapid access to foreign markets. This
study contributes in terms of both theory and practice:
1. At the theoretical level, it provides a model of an IT-enabled ITT promotion process, which can be
used as a framework for further research.
2. At the practical level, the model can guide managers in promoting technology for international
technology transfer and implementation effectively and efficiently.
Due to rapid changes in technology, shortening of technology and product life cycles, maturation of the
market and increased competition, growing affluence and liberalization of the newly industrialized and
developing country markets, hi-tech companies are trying to gain access to these markets through
technology transfer.
In order to inform prospective foreign recipients of the availability of the technology, and to persuade them
to opt for the technology-marketer‘s offer, proactive international promotion is needed. Due to complex
and intangible nature of the technology, and different needs of prospective recipients, promotion of ITT
through the utilization of conventional promotion tools may not be suitable, inexpensive and affordable to
several companies.
ERP has promotional capabilities, that is, producing and exhibiting a comprehensive catalogue, delivering
information required by prospective customers, letting customers check the inventory in real time, letting
customers process the order and so on. Although ERP has promotional capability, no research has been
done till today on how it could support the promotion of technology transfer. An in-depth literature review
suggests that a very limited literature exists on IT-enabled IP of technology transfer for companies.
This research has been undertaken considering the capabilities of ERP and other new ITs, and the need for
international promotion of technology transfer. In order to fill up the gap in the literature and contribute to
new knowledge, the in-depth study of IT-enabled international promotion process has been undertaken. The
major objective of this research was to develop a systematic framework for the IEP process and to fill the
gap in our knowledge about the current, as well as the potential uses of ITs in the IEP.
This study began with a literature review of printed and digitized resources (databases of journals, Internet
resources, etc.). In-depth interviews with companies, practitioners and researchers were then conducted.
Theoretical and empirical investigation, analysis of the case companies have led us to the development of a
model of ERP-integrated IEP process. The ERP-integrated IEP process consists of six phases: making
foreign customers aware of market offerings, delivering important details of market offerings, making an
audience comfortable with market offerings, confirmation of market offerings (preferable in open
competition situations), generating sales from market offerings and post sales communication.
This study contends that by utilizing new ITs, complex conventional IP process can be almost replaced by a
less complex ERP-integrated IEP process which can facilitate ITT.
If the prospective technology supplier is an SME, it could use fewer IT tools and services for promotion of
ITT in the beginning and obtain desired benefits. The existing IT infrastructure needs to be extended
through integrating other IT tools as the enterprise grows. The integration of the enterprise‘s existing
information systems with the Extranet, Intranet, multimedia based computer simulation software, push
technology, multimedia teleconferencing, Internet robots, and other IT tools can develop the required IT
infrastructure for more efficient and effective IP process than the conventional IP process.
9.1 Implications for Managers
This study offered a methodology of how to execute IT-enabled IP effectively and efficiently, avoiding
problems. The study is important for current and future IT and for technology-driven international/global
business environment.
Companies are challenged to internationalize due to rapid shortening of technology and product life cycles
and intensified competition on their domestic markets. Therefore, the study of competitive advantages of
companies through IT-enabled IP is essential.
In order to survive on an intensely competitive marketplace, companies are trying to implement ITs in their
IP efforts. Therefore, it is very important for companies to gain an in-depth understanding of the factors
that have an impact on their performance. The result of this research is very useful in providing such in-
depth understanding. We were able to uncover how companies can effectively utilize new ITs in their IP
efforts. We also demonstrated how companies could be successful in IP and overcome the lack of success
in achieving benefits to date.
This study provides organizations with a more comprehensive picture of what actually happens in the IT-
enabled IP process. Companies can obtain their intended benefits from the IT- enabled IP process model
via the addition of new ITs. Effective utilization of IT-enabled IP methodology can provide the following
benefits:
increased awareness of the enterprises and their market offerings (technologies and/or products
and/or services) substantially on the foreign markets
rapid generation of leads
faster and easier sales
decrease in promotional expenses
increase in promotional capacity
new markets openings
internationalization through IT-enabled promotion of ITT.
Our empirical findings show that there are very high possibilities of companies running into the associated
risks of IEP. In order to become successful in IEP and in a highly competitive and complex global business
environment, companies should:
1. Identify their target audience through effective international market research. Companies should
also do ongoing international market research, as the present global business environment has
become highly complex with rapid and unexpected changes occurring often.
2. Identify problems and risks at the inception stage of the IEP process and make plans to eliminate
problems and reduce risks.
3. Develop a comprehensive catalogue by means of ERP and integrate it with the Internet. It should
be user-friendly in locating the required information, rich in content, lower level in terms of
graphics and culturally friendly. Links should be established and promoted intensively on- and
off-line.
4. Combine many IT tools and use them innovatively, systematically, intensively and in an integrated
manner every day.
5. Focus on understanding customers’ specific requirements and communicate such understanding to
customers through all IT tools.
6. Frequently provide problem solving advice to those newsgroups, mailing lists, I-digests, etc.
where the enterprise’s potential and present customers are located in order to increase visibility
and to build credibility.
7. FAQ could be delivered through ERP.
8. Offer informative articles through autoresponders, publishing in e-magazines, storing at Web sites
and other locations to develop the credibility and establish the enterprises as experts.
9. Enclose their URLs, e-mail addresses, autoresponders to business cards, letterheads, envelopes,
brochures, catalogues, and magazine advertisements.
10. Register themselves with various organizations, for example with the World Trade Center, Dun
and Bradstreet etc. and arrange payment mechanisms through the world’s leading financial
transaction firms.
11. Focus on communicating risk-free buying, secure payment, secure privacy and develop brand
name credibility.
The above list is not exhaustive. Managers must be very open and flexible individuals possessing foresight
and long term thinking capacity. In this way the managers must try to adapt tactics and strategies to deal
with a constantly changing environment.
9.2 Future Research Directions
This research delivered an IT-enabled IP process model, which can be used as a basis for further research in
the ITT field. Future empirical and conceptual research will be helpful in further refining the model.
The IT-enabled IP process model is composed of six interlinked phases which are: making foreign
customers aware of market offerings, delivering important details of market offerings, making an audience
comfortable with market offerings, confirmation of market offerings (preferable in open competition
situations), generating sales from market offerings, and post sales communication. Each of these phases
needs to be developed through further research.
Hi-tech companies are using a type variety of ITs in their various stages of ITT promotion in order to make
the technology transfer promotion process more efficient and effective. IT will be able to play even a
greater role in promoting the technology in the future. It is important to investigate what are the most
effective promotional tools in global electronic environment, e.g. in-depth research is necessary to find out
how the utilization of advanced conferencing technologies could be increased for effective global
promotion.
Our framework was developed on the basis of few case companies where technology has been transferred
from Finland to emerging markets and developing countries. It is necessary to examine its validity also in
other situations. Because this framework was developed from the technology supplier‘s perspective, it
could be interesting to examine from the technology recipient‘s perspective, the factors that are influencing
on the promotional process and the critical success factors of the IT-enabled IP process.
Acknowledgment
We would like to extend our thanks to all the interviewees who participated in this study for their
cooperation.
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