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Many multinationals have transferred parts of their production network to China, with global sourcing and R&D, at least in parts, to follow soon. Given China's low level of intellectual property rights protection companies are subject to expropriation of their product and manufacturing technologies. Headquarters fears that once the intellectual property is drained off to Chinese competitors a long term competitive threat may arise not only within in China but also on a global scale.
The Chinese subsidiary management of the multinational corporation is dependent on technological resources in order to master the increasingly dynamic competitive landscape in China and to fulfill growth… Mehr dazu