Chinese companies' overseas expansion reverses trend and explores "technology for market" strategy

On October 14, EU Trade Commissioner Maroš Šefčovič stated after a meeting of EU trade ministers that while the EU welcomes foreign investment, such investments must create jobs, generate added value, and facilitate technology transfer to Europe, just as European firms have done in China. Emeritus Professor Tan Kong Yam from SSS noted that China’s early “market-for-technology” strategy relied heavily on joint ventures, local content requirements, and technology diffusion. A key example, he said, was the auto industry’s expansion in the 1990s, when foreign carmakers formed joint ventures with Chinese firms, helping China gradually acquire critical technologies.

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