Flender/Flender Gear Units/Helical gear unit H3
Datong Gears Plant, and Zhuzhou Auto Gears Plant, all major automotive gear producers; and Sichuan Gears Plant, producer of gears

for lifting and handling machinery. Equity and contractual joint ventures are China' favored manner of foreign investment. These types of

joint ventures have become increasingly popular because they commit foreign investors for minimum of 5 years and because they provide

China with foreign capital and the latest technology. In these ventures, the Chinese company usually provides the land, labor, factory,

and infrastructure, while the foreign investors provide the technology, machinery and equipment, and technical expertise. During 1-8, several prominent foreign companies entered into variety of agreements with Chinese firms to manufacture gears in China. Renke Tacke of West Germany operates gear-manufacturing and distribution facility in China under licens- ing agreement. In 1, Eaton Ltd. of the United Kingdom entered into an accord with Chinese automotive manufacturers to license the production of its heavy-duty Fuller Roadranger twin countershaft truck transmissions. The agreement called for Eaton to supply transmissions for assembly until China' truck industry acquired the capability to manufacture its own transmissions. 1 Japanese companies such as Daihatsu Motor Company, Nippondenso Co., Fuji Heavy Industries, Isuzu Motor Co., Honda Motor Co., Suzuki Motor Co. and Yamaha Motor Co. have entered into an agreement to produce light commercial vans, motorcycles, trucks, and subcompact passenger cars on knock- down basis jn China. 1 1 Ibid. '8 Ibid. ' "Taiwan Firms Head Overseas as Costs Increase at Home,"7teAsianWall Street Journal Weekly, Aug. 1,1, . 1. Faure, Louis, "'Industria Cinese degli Ingranag,gi delle Trasmissioni di Potenza: Riflessioni su un Viag,gio," Organi di Trasmissioni, November 1, pp. 2-3. '9 "Eaton signs truck transmission pact with China," Automotive News, Feb. 1, 1, . 5. te "Torre