In 1984, high-quality output was rare among China's 300 refrigerator manufacturers and, Zhang believed that Chinese consumers would be willing to pay more for higher-quality products and reliable service. Inspire by the workmanship of products he saw on a 1984 trip to Germany, Zhang signed a technology licensing agreement with German refrigerator maker Liebherr. Later, Haier imported freezer and air-conditioner production lines from Derby of Denmark and Sanyo of Japan. Joint ventures (JVs) with Japan's Mitsubishi and Italy's Merloni brought Haier more foreign technology and designs."First we observe and digest," Zhang explained. "Then we imitate. In the end, we understand it well enough to design it independently.