On Transnational Corporations' Technology Strategy And Chinese Corporations' Solutions To Its Influences

Lacking core technologies is the fatal weakness of our corporations. What they do is to utilize technology architectures and standards developed by Transnational Corporations (TNCs) to produce final products, though they have developed rapidly and have had large market shares in some industries. Those corporations are the assembly lines of TNCs. The lack of core technologies causes problems of excess capacity, similar products in domestic market and price competition.Chinese corporations should try hard to improve their technological competence and core competence.Because of the Knowledge Economy and New Technological Revolution, technology becomes so vital that it has been put first in TNCs strategy and seen as the determinant factor to core competence. As for these TNCs, the key to success in the fierce competition is core competence based on core technological competence. Technology strategy help TNCs control the upstream of value chain, while they transfer the downstream to developing countries to maintain dominate position in global competition and orient the way of technology development.This paper is divided into five parts. The first part is the introduction, discussing the problems of cell phone industry. Theoretical analysis is put the second. The third part describes thecontents and new features of technology strategy. Then, effective methods to improve our corporations' core technological competence are discussed in the fourth part while the conclusion goes to part five.The description of the technology strategy of TNCs by the line of "R&D-formation-utilization" is quite complete. The emphasis is the new development of the strategy.New ideas in this paper are: (1) In order to research and develop in technology and R&D alliance, there are two ways: A company may host the alliance or join into it. (2) To improve our technological competence, we must cooperate with TNCs and be their partner of the strategic alliance, taking advantage of our control to channels, huge market and rich human resources. It must be an effective way.