Cyclical Technology Transfer

There is a brewing challenge in China's continued development from a rural economy to an industrial economy to an Information-based economy and finally to an Ecologically-friendly economy.

China has been on the receiving end of technology transfer for many years since 1980. It has used this new technology to build a rapidly developing economy. This technology has driven China's export engine.

Unfortunately the export engine has stalled and may stall completely. The companies who have built businesses and wealth on the back of this momentum now must face the reality that they must shift their focus from quick "easy" rapid growth to the next new thing - environmental technology.

The US on the other hand has begun to put environmental technology as their next new focus. The US is now embrassing this as the new standard to measure businesses and technology.

If China does not make the shift to the next new thing rapidly enough it will end up in the same position it has been in for the last 20 years - importing technology.

So China's challenge is not to "wait" but rather to invest in R&D to develop its own next new thing technology and solutions so it is not faced with the same challenge of importing technology.

This is not a small challenge but one that Chinese private enterprises must face squarely head on.