Asia Times Online :: China Business News - China is world's top spot for R&D

China Business

Feb 8, 2007

China is world's top spot for R&D

BEIJING - China has become the most popular country in the world for setting up new research and development (R&D) facilities, according to the United Nations.

Sixty-one per cent of foreign enterprises establishing new R&D centers choosing to set up in China, compared to 41% in the US and 29% in India, says a report from the United Nations Conference on Trade and Development. By 2005, multinational corporations had established 700 R&D centers in China, the

report states.

Foreign direct investment (FDI) has accelerated the development of numerous important business sectors, especially the home appliance, automotive and telecommunication industries.

Nearly all the world's major technology giants have invested heavily in China, with some US$7.7 billion in FDI made by 2005 for the manufacture of telecommunication, computer and other electronic equipment.

Joint ventures accounted for over 85% of the total $218 billion in high-tech exports that year.

Fierce competition, both domestic and international, has seen multinational companies transfer more assets and expertise to China. Hewlett-Packard Ltd invested $18 million in staff training from 1989 to 2000, while IBM trained 100,000 software engineers in China within three years.

The enormous amount of FDI has contributed greatly to the development of local talent in high-tech industries, analysts said, and also encouraged many overseas students to return.

(Asia Pulse/XIC)

Head Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East, Central, Hong Kong
Thailand Bureau: 11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110