Abstract
This paper investigates knowledge transfer process between UK subsidiaries and a Chinese parent firm to illustrate interactions when identifying and disseminating knowledge. Applying grounded theory analysis in data collected from 40 interviews both on China and UK sites, coding process is conducted to generate themes and categories. The findings suggest two streams of strategies related to codified knowledge and tacit knowledge transfer and protection respectively. Particularly, the paper identifies three phases of tacit knowledge transfer and protection process. This would give practitioners and policy makers implications about how knowledge transfer is interacted in a current context of economy, especially when U.S. and China are both in a challenging positons these days.