Although China has made very significant progress along a range of fronts in recent years,it continues to face major challenges in relation to economic sustainability. The low-costmanufacturing export processing model which has been a major driver of economicgrowth for many years is no longer adequate for the next period of development andChinese leaders are determined to upgrade the country’s economic activity through pro-moting indigenous innovation in order to achieve greater technological autonomy (TheWorld Bank and Development Research Center of the State Council, The People’s Repub-lic of China, 2012). Despite a long period of sustained economic growth since China’sopening to internationalization, the human and environmental costs associated with itsrole as a major manufacturing centre within both global and East Asian production net-works have been considerable. As a late developing nation, its economic model continuesto be inordinately dependent on imported technology which results in very low levels ofadded value being located in China and significant costs for Chinese companies in terms oflicense and royalty fees. China’s 12th Five Year Plan and also its Medium to Long TermPlan for Science and Technology are designed to bring about major changes in the devel-opment model. The central objective of indigenous innovation has given rise to consider-able concern among foreign investors in China who see its implementation in specificareas like public procurement as a means of protecting the local market from outsidecompetition.