This study investigates the willingness of German wind turbine manufactures to transfer their technology to China within the framework of the Clean Development Mechanism. In order to do so, the study undertakes the following steps: It gives an introductory explanation of the Clean Development Mechanism. It then discusses the goals and interests of the four main actor groups of a technology transfer project between Germany and China. To better understand the dimensions and issues at stake within technology transfer, a theoretical model of technology transfer based on Neo-Schumpeterian insights about the role of technology in economic development is evoked.

After assessing the German firms’ willingness to undertake technology transfer to China via an empirical case study, the study concludes the following:

• German wind turbine manufactures are willing to extend their technology transfer activities, but they will always keep key technology

• Essential for further transfer are in the view of the German firms more finance and a better political support structure for wind energy in China

• The potential for conflict in technology transfer is higher the in the political rhetoric around the Clean Development Mechanism acknowledged

• Finding a compromise between all actors will most likely entail a trade off between economic and environmental goals