I would imagine their capabilities are a lot greater today than at the time we sold them the initial technology. Yet what looked like a promising overseas business has been stifled. The ROVs were no more cost-effective than those produced elsewhere, and most companies in the world now use newer, more sophisticated models, explains Dugan. We would need a foreign partner to help us. Therein lies the biggest problem for China-based innovators.
Capital remains incredibly hard to come by.
The country's state banks are still getting used to lending to private companies. With little hard collateral, and in many cases no track record, most hi-tech companies don't have a hope of getting a loan from their local bank. Listing locally requires government approval, and large state-owned companies are favoured. Floating shares on an overseas exchange is even harder. In late January, Deng Nan, vice-minister of science and technology and the daughter of Deng Xiaoping, said the government was considering various ways to commercialize the work of research laboratories and allow private technology companies easier access to stockmarkets.