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Yes, in most cases, foreign companies are REQUIRED to either transfer their tech or have a domestic partnership as a pre-condition to do business in China (ie,
by tooltalk 7y ago
Yes, in most cases, foreign companies are REQUIRED to either transfer their tech or have a domestic partnership as a pre-condition to do business in China (ie, access to domestic market in China). There are a few notable exception to this rule -- Tesla is one recent exception. Samsung also has been able to set up multi-billion USD DRAM factories in China without any tech transfer in spite of the Chinese gov't ambitious plan to develop their own domestic high-tech manufacturing sector.
Samsung doesn't have any OLED manufacturing in China and never agreed to such terms before. In this particular case, we aren't just talking about Chinese companies poaching Samsung's former/retired engineers or shamelessly copying their IP. The Korean authorities in a sting operation stopped a bunch of Samsung suppliers from smuggling Samsung's advanced OLED manufacturing machineries to some unnamed Chinese company (wink wink you know who) in China at the port of departure in South Korea.