This paper focuses on technology transfer issues that successful providers of services for powertrain design and development will consider as they build relationships with the People''s Republic of China (PRC). Demand for all modes of transportation is growing rapidly in the PRC. Their auto industry claimed the title of “highest-volume worldwide producer of motor vehicles” in 2009; as of 2010, about 44% of passenger cars are domestic models, and private car ownership has been increasing at the rate of 25% per year. The exploding GDP not only brings great wealth to the nation as a whole, but also strains the infrastructure and the environment (as private car ownership climbs, congestion increases along with vehicular emissions). With this growth comes a commensurate need for knowhow and experience. Participating in this growth requires sensitivity to the past. An ancient, complex history has resulted in a unique business culture, at least when viewed through the eyes of the typical Westerner. Steeped in tradition, decisions are driven by concepts such as guanxi (a social and business network), mianzi (the saving of face in business), and renqing (an unwritten code of reciprocity).
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