The article examines Japanese technology transfer policy towards China within Japan`s global scale performance. It also attempts to point out issues that can be beneficial for the EU in its partnership with China. It is argued that despite widely popular view that Japan has been actively transferring technology to China, the analysis of Japanese technology transfer policy on global scale reveals moderate transfer of technologies to China. Moreover, such Japanese approach would unlikely change. To demonstrate it, first, the paper briefly overviews the EU technology transfer policy towards China. Second, it traces Chinese and Japanese policies in science and technology. Third, given that FDI flows are a prerequisite for technology export, it defines Chinese share in the Japanese FDI. Fourth, it examines Japanese technology transfer in the world and assesses Chinese share in it. Fifth, it examines the activity of the Japanese government and the problems Japanese business is confronted with while dealing with China on technology transfer.