Win-Win or Win-Lose? China’s Role in the Development of Pakistan’s Domestic Wind Industry

This thesis answers the following research question: to what extent do the Chinese government and Chinese companies contribute to the development of Pakistan’s domestic wind energy industry through technology transfer (TT)? In order to assess this question, I use China as a benchmark for successful TT in the wind industry. The main finding is that there is evidence that the Chinese government and Chinese companies contribute to the development of Pakistan’s wind energy industry through TT. The Chinese government does so through its involvement in several Pakistani knowledge institutions. As for Chinese companies, they go to great lengths to employ and train Pakistani engineers, and one Chinese company even works together with a Pakistani engineering company. That being said, this thesis also finds that Chinese companies are outcompeting Pakistani companies. This prevents Pakistani companies from gaining valuable learning experiences and may also dissuade them from investing in wind...Show moreThis thesis answers the following research question: to what extent do the Chinese government and Chinese companies contribute to the development of Pakistan’s domestic wind energy industry through technology transfer (TT)? In order to assess this question, I use China as a benchmark for successful TT in the wind industry. The main finding is that there is evidence that the Chinese government and Chinese companies contribute to the development of Pakistan’s wind energy industry through TT. The Chinese government does so through its involvement in several Pakistani knowledge institutions. As for Chinese companies, they go to great lengths to employ and train Pakistani engineers, and one Chinese company even works together with a Pakistani engineering company. That being said, this thesis also finds that Chinese companies are outcompeting Pakistani companies. This prevents Pakistani companies from gaining valuable learning experiences and may also dissuade them from investing in wind-related technologies. However, this is not some scheme by the Chinese government to hollow out a fledgling Pakistani industry. Instead, it is a result of ineffective policies by the Pakistani government itself. This thesis contains three important takeaways. First, it shows that, when it comes to providing training opportunities for locals in Pakistan, Chinese companies follow their government’s official objectives. Second, it underlines earlier findings by Schneider et al. (2021, 25) by showing that local actors play a crucial role in determining the outcomes of Chinese foreign economic activities. Chinese actors cannot single-handedly ensure TT in their foreign operations; the interactive nature of TT also demands strenuous efforts by companies and government institutions in the receiving countries. Third, by using China as a benchmark, this thesis also shows us that—when it comes to developing a domestic wind energy industry—a highly coordinated, state-led approach like the one adopted by China is more effective than Pakistan’s market-driven approach.Show less

Leiden University Student Repository

Documents

In Collections

Win-Win or Win-Lose? China’s Role in the Development of Pakistan’s Domestic Wind Industry