Technology Transfer The regulatory framework in China for cross-border technology transfer. A number of special regulations on registration and approval requirements, unfair competition and market order issues as well as tax law and foreign exchange law also provide for cond

Technology transfer is governed by a large number of laws, regulations and ministry rules in China. Similar to other legal systems, the Chinese law regards technology transfer contracts as a specific category of contract, thus, the Contract Law is the principal substantive law applicable to such agreements. The Contract Law contains a special chapter on technology contracts (Chapter 18 Contract Law) which is supplemented by the general provisions in the first eight chapters of the law. Chapter 18 of the Contract Law is divided into four sections and formulates basic principles (Section 1) as well as specific provisions for contracts for technology development (Section 2), contracts for technology transfer (Section 3) and contracts for technical consultancy/service (Section 4). The Contract Law and related regulations, interpretations and rules are contained under the field of Civil and Civil Procedure Law and are therefore not repeated under the field of Technology Transfer. This applies equally to the relevant provisions on the patent law system (covered under the field of Patents)

This field focuses primarily on the regulatory frame work for cross-border technology transfers and includes a number of special regulations concerning registration and approval requirements, competition and market order issues as well as tax law and foreign exchange law which provide for conditions and restrictions on such technology transfers.

All cross-border technology transfer contracts are subject to the foreign trade regime of China as laid down in the Foreign Trade Law. Although the Foreign Trade Law is based on the principle of free flow of goods and technology, it imposes a number of restrictions to technology import and export (see Chapter 3 of the Foreign Trade Law in this field). The relevant provisions in the Foreign Trade Law are further defined and implemented in a number of regulations and measures. The Regulations on Technology Import and Export Administration offer further and more specific provisions on technology import and export while the Measures for the Administration of Registration of Technology Import and Export Contracts stipulate the conditions for the registration of technology import and export contracts. Technologies restricted and prohibited from export and import are defined in special catalogues issued by MOFCOM and regulated by the Measures for the Administration of Technologies Prohibited or Restricted from Export/Import. The Circular on Encouraging Technology Importing and Innovation and Promoting Changes in Pattern of Trade Growth gives a general guideline on policy trends in China towards technology transfer and innovation. 

In addition, rules concerning tax and foreign exchange issues relevant for technology transfer can be found in this field.

 

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