China will be able to upgrade its level of technology and innovation if local companies can establish more joint research projects with foreign firms, according to an economic specialist.
China should encourage foreign firms to set up their research and development centers in the country and jointly hold some innovation projects with local companies, Cui Xinjian, vice president, Business School of the Central University of Finance and Economics, said in an interview with the 21st Century Business Herald.
The technology that foreign firms release to Chinese firms will help China to transform its innovative technology sector, Cui said.
In order to achieve this, he said China should improve the protection of intellectual property rights so that foreign firms will have more confidence to set up their research centers in the country.
Cui said foreign investment has helped China create jobs and boost exports and it should be further utilized to propel the country’s industrial upgrade.