This paper analyses the transfer of standardized products by FDI between industrial countries, newly industrialized countries and developing countries. One focus of this study is the question whether local entrepreneurs can acquire knowledge as joint venture partners and utilize this knowlegde for an outgoing investment in a third country. This requires that the local entrepreneurs have access to product, production process and management know how. This paper proposses the hypothesis, that the transfer of simple, standardized products can be explained with the catching-up product cycle. In the empirical part, Japanese FDI in Taiwan are compared with Taiwanese FDI in China in the branches electric & electronic and automobile parts. Case studies supplement this research. There two major findings. Taiwanese-Japanese joint ventures are operating successfully in China. The Taiwanese side has acquired at least management know-how in co-operation with the Japanese.