Chuang Ching of Alcatel-Lucent Shanghai Bell says government support to R&D investment is attractive for multinationals. [Liu Zhe / China Daily]

Greidanus feels there needs to be more fusion, as foreign multinationals are still excluded from a number of the government-led R&D programs, where he believes they could play a major role.

"It has been traditionally difficult for multinationals in China to participate in these programs but we hope that will change over time," he says.

"We have had several indications in terms of the discussions that we have had with the government where we could at least submit a proposal. So we have seen some progress there."

Whether foreign multinational will ever be fully part of a national R&D strategy remains doubtful.

For the moment they are playing a key role in developing the country's R&D base with many of the Chinese scientists they foster going on to work for Chinese companies.

Chen at GE does not necessarily see this as a bad thing so long as they don't take with them company secrets.

"When you lose 5 to 10 percent a year of your population you are bound to have some people walk away with the know-how. I don't see it different from anywhere else. It is just the same for us in the US."

Chen Xiangli, president of the GE Technology Center in China, says being close to customers is the main draw for multinationals' R&D investment in the country. [Provided to China Daily]