It is generally said that one of the most important roles of foreign direct investment(FDI)for developing countries is technology transfer because it brings not only production technology but also management technology or know-how.The literature on technology transfer concerning in-depth case studies shows the process of transfer,but the scope of this literature has been confined intra-firm technology transfer.However, technology transfer from FDI is not only to the affiliates but also to local counterpart or suppliers through several ways.The pure production technologies are not easily transferred outside,but it is relatively easy for management technologies and know-how to be transferred.These transferred technologies raise local productivity,for example,through technological assistance to local suppher from an affiliate of multinational company.This paper calls this type of technology transfer from FDI‘secondary transfer’,and introduces a case study of such transfer by Japanese affiliated firm in china. It is generally said that one of the most important roles of foreign direct investment (FDI) for developing countries is technology transfer because it brings not only production technology but also management technology or know-how. The literature on technology transfer concerning in-depth case studies shows the process of transfer, but the scope of this literature has been confined intra-firm technology transfer.However, technology transfer from FDI is not only to the affiliates but also to local counterpart or suppliers in several ways. The pure production technologies are not easily transferred outside, but it is relatively easy for management technologies and know-how to be transferred. transmitted technology raise local productivity, for example, through technological assistance to local suppher from an affiliate of multinational company. This paper calls this type of technology transfer from FDI ’secondary transfer’, and introduces a case study of such transfer by Japanese affiliated firm in china.