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Provisional Regulations of the State Council on Technology Transfer

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  1985.01.10
STATE COUNCIL OF CHINA
PROVISIONAL REGULATIONS OF THE STATE COUNCIL ON TECHNOLOGY TRANSFER
(Promulgated 10 January 1985 by the State Council)
 These  Regulations concerning technology transfer are formulated in
order to arouse  the enthusiasm, initiative and creativity of staff
and workers, in particular scientific and technical personnel, to
bring about the rapid application  of  scientific  and technical
research  results  and  knowhow to material  production,  and to
effectively implement the policies of economic construction reliant
on  science  and technology and of the orientation of science and
technology to economic construction.
(1) Technical Commodities and the Technology Market
 In  the context of the socialist commodity economy,technology is
also a commodity. Units and individuals may all transfer technology
free  of the restrictions  of regional, departmental or economic
structure. The State has decided to open wide the technology marked
and to promote a flourishing of technology trade, in order to promote
the development of production.
 With regard to any technology which assists the development of new
products, which  raises  product  quality,  reduces product cost,
improves operational management  or  leads  to increased economic
benefit,  the transferor and transferee may engage in technology
transfer  in  accordance  with  the principles  of  voluntary
participation   and   mutual   benefit  and  agreement  through
consultation.  Technology  which  violates  State  Law, policy or
regulations  shall  not be transferred. The transfer of technology
which involves  national security or the confidentiality of which is
demanded by the  greater  economic interest, shall be handled in
accordance with the relevant State regulations.
(2) Technology Transfer Fees
 A  technology  transfer  fee  refers to the price for an item of
technology, following  adjustment in the marked and consultation and
agreement between the two parties. It may be calculated as one
lump  sum,  as a fixed percentage  of  increased sales or profits
resulting from the implementation of the particular technology, or
calculated by another method agreed upon by the two parties.
 With  the  consultation  and agreement of the relevant parties
to  the technology  transfer,  an intermediary (including a unit or
individual) who facilitates  trade in an item of technology may
receive a reasonable remuneration.
(3) Technology Transfer Contracts
 For  the  transfer  of  technology,  the parties shall sign a
technology transfer  contract  which  conforms  to  the "Economic
Contract Law of the People's Republic of China" and the relevant
provisions of other laws.
 The following items shall be clarified in the contract

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