The Chinese legal system was poorly developed in the Imperial era and remai
ned so in the People's Republic until the process of reform began in the 19
80s. The authorities now recognize that a market economy requires the rule
of law and that technology development and technology import in particular
need firm legal foundations. Significant steps have been taken to protect t
echnology as intellectual property and to support technology import. Nevert
heless, an extended period of institution-building will be needed before th
e legal framework can be regarded as satisfactory. Furthermore, the authori
ties' desire to control technology import through regulations may restrict
the efficiency with which the country acquires the know-how which it needs.