57 percent of China��s total exports in 2004 were from foreign funded businesses which hold resources of core technologies, brands and global marketing network.

Li Deshui, head of the National Bureau of Statistics, warned that Chinese enterprises are not equipped with core technologies and intellectual property rights. More than 95 percent, 80 percent, 70 percent and 90 percent of patents in sectors of pharmaceuticals, chip making, digital controlled machine tools and textile machinery, and the autos are foreign patents. DVD producers have found their business nearly profitless after they pay for patent use.

Li also pinpointed the problem of sales and service network. Much of export profits lies in the wholesaling and retailing. But many Chinese companies have not built their own marketing network on the global market. This gives chances to foreign distributors.

By People's Daily Online