Technology transfer to China to address climate change mitigation
This paper analyzes whether and how transfer of climate mitigation technologies to China occurs, by studying cases of seven technologies that are at the stage of deployment or diffusion. Most of these technologies were already transferred to China in terms of both technology adoption and local production. International division of labor of manufacturing and localization policies by the Chinese government facilitated local production by China, which resulted in deep cuts in production costs. Such cost reduction, coupled with technology diffusion policies by the Chinese government, then accelerated deployment and diffusion in China and other emerging economies that import Chinese products. There is a risk, however, that a sacrifice in quality as a result of Chinese localization could make those who purchase and use Chinese products hesitant and prevent further diffusion. To stimulate further adoption, developed countries can provide technical assistance for improving Chinese domestic policies, including technology diffusion policies, product quality control, and creation of sound business environments where foreign firms can safely transfer their high?quality technologies. Thus, considering the unique position of China as