THE transfer of technology into China is likely to produce advantages which far outweigh the theoretical risks if it is a carefully thought-out part of a strategic plan for market penetration. Mr Brian Stewart, director of operations (China region) of Racal Electronics, said yesterday that if successful transfer of technology lead to a major breakthrough into the Chinese domestic market, the supplier of the technology was already better off. ''And if the next stage - export from cheaper manufacturing base - is achieved, it may provide a further gain in sales overall,'' he added. Mr Stewart has been advising the electronics group on the expanding China market and participating in negotiations and operations in the region over the past decade. Speaking at the China Law and Practice Seminars on technology transfer into China, Mr Stewart said it was high technology which the Chinese national policy encouraged and customers needed. Commenting on fears that transferred technology would be copied, Mr Stewart said the seller had practical protection against unauthorised copying and unauthorised sales in export markets. This protection could be ensured when one crucial element in the equipment was retained by the seller in a form where copying was not a practical proposition in terms of time or volume. The crucial element could, for example, be one sophisticated device without which the equipment would be incomplete and useless. Mr Stewart also said that the lower the technology, the greater the risk that a buyer might try, and even succeed, in copying the original equipment using local components.