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Report

Transferring technology to China

A German company known for the sterling quality of its gear-wheels for automatic transmissions has no compunction about transferring its know-how to China despite the risk of intellectual property theft.

Neue Zahnradwerk Leipzig (NZL) is investing €15 million in a plant in China and training workers in its processes. NZL already has a big customer lined up -- Volkswagen -- and hopes to cash in on the Chinese automotive market. It says it's impossible to copy the processes that put its products in a quality class of their own.