Survey　data　from　Chinese　enterprises　are　used　to　analyze　the　relationship　between　enterprises＇　economic　performance　and　technology　transfer　variables.　Analyzing　results　show　that　technology　transfer　between　Chinese　enterprises　themselves　is　very　beneficial　to　improving　enterprises＇　economic　performance.　And　not　only　technologies　adopted　from　inland　but　also　technologies　transferred　to　inland　all　strengthen　the　enterprises＇　technology　innovation　capability　and　market　competitiveness.　At　the　same　time,　introducing　advanced　technologies　from　developed　countries　plays　an　important　role　in　the　Chinese　economy　catch-up　process.　Assimilation　and　absorption　should　be　attached　more　attention　for　Chinese　enterprises　to　introduce　foreign　technologies.　The　analysis　results　also　arguer　that　codified　knowledge　from　abroad　and　inland　is　all　absolutely　necessary　for　Chinese　enterprises　to　strengthen　innovation　capability　and　market　competitiveness.　Finally,　the　T-test　analysis　proves　that　technology　transfer　contribute　enterprises＇　economic　performance　indeed.　©　2006　IEEE.