Research For The Localization For Sino-Japan Joint-venture And The Relative Technical Secrecy Maintaining

China's direct investment abroad reached $55.91 billion in 2008, and the total amount of Chinese direct investment abroad had risen to $183.97 billion by the end of 2008. However, China has engaged in investing overseas for a relatively short period and does not have much experience. As the amount of Chinese investment overseas is surging, the aim is gradually turning to increase the market share. While the localization of enterprises is regarded as an effective way to expand the market share, it may cause the spillover of the technology. How to balance the localization and technology protection has become the major problem of investing abroad.It has been 30 years since Japan began to invest in China when Reform and Opening-up Policy was initially carried out. The amount of its investment has been greatly enlarged and the orientation was transferred from increasing export to earning big market share. Japan's investment in China has achieved great success in terms of market share and economic benefits.Based on the analysis of Japan's investment in China, the localization of Japanese enterprises and the protection of technology, the author is trying to summarize Japanese enterprises'localization and technology protection in China, providing practical reference to Chinese corporations investing abroad.