After reviewing the relevant literature on international technology transfer, this study outlines and examines recent reforms in China's science and technology policy. The consequences of international technology transfer for the development of China's technological capacity and its economy are analysed. Particular attention is given to China's electronics industry and to the expansion of China's television industry. This has resulted in China becoming the world's major producer of television sets. The roles of foreign direct investment and of international product (and investment) cycles in this industrial development are examined. The development of China's television industry is placed in the context of the evolution of this industry worldwide.