Experts expect this policy to have a “significant impact on the future promotion of China’s domestic industry’s technology innovation, improving competitiveness and building domestic branding in the long run” (Global Energy Council, undated). This allowed them to get established in the domestic market and gain experience in the production of larger turbines. However, the Chinese manufacturers soon found out that foreign firms were reluctant to license their most recent, state-of-the art technology; instead they preferred to license turbines that were technologically outdated for fear that the transfer of advanced technology would lead to knowledge spillover, thus undermining their competitive advantage (Liu, 2006).