Govt says no need for JV tech transfers

Foreign companies have no obligation to transfer their technologies to local partners under a joint-venture format in China, the Ministry of Commerce reiterated on Thursday.

The ministry's response follows foreign media reports that global investors were required to share their technologies with their Chinese partners, violating World Trade Organization rules.

Sun Jiwen, the ministry's spokesman, said there are no compulsory technology transfer obligations for foreign investors. All the terms and conditions in business negotiations between two parties result from market behavior rather than such a "nonexistent duty", according to Sun.