Transnational corporations play a central role in Chinas economic transition. They are a crucial source for China to obtain advanced foreign knowhow in order to modernise its economy. The increasing presence of transnational corporations has brought Chinese firms and employees exposure to foreign business practices and culture and more precisely to different types of foreign knowhow. This book shows the impact and preconditions of knowhow transfer through transnational corporations. Peter Werner presents empirical data gained from a case study in Chinas largest and most dynamic city Shanghai. Using an interdisciplinary approach the author introduces and examines three stages of the knowhow transfer process. While much of the research on international business und transnational corporations has dealt with knowhow transfer issues very few studies have recognised and empirically linked these three stages to a comprehensive analytical framework and placed it into the context of a transition economy.