Transferring Technology In China – Understand Your Obligations And Reduce Legal Risks

Cross-border technology transfers can be challenging to navigate in China. As China categorizes technology transfers into three groups (prohibited, restricted, and free), the transfer can be subject to certain limitations or requirements. For foreign companies transferring technology in or out of China, it is crucial to understand obligations and reduce legal risks.  

In China, technology transfers are primarily regulated by the Civil Code of the People's Republic of China adopted on 01 January 2021 (Civil Code), and the Foreign Trade Law of the People's Republic of China (Foreign Trade Law”), adopted by the Standing Committee of the NPC on 12 May 1994 and last revised on 07 November 2016. We provide a Q&A on technology transfers in China.