The sentence appears faulty to me. Without "knowledge and" it would be OK. The words "knowledge and" convey a sense that knowledge, perhaps specifically knowledge of technology, perhaps specifically residing in its SOEs, is being maximised for the betterment of China's domestic labour force, but syntactically they do not actually fit.
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RayHHow about this?I don't know, I didn't write this... But I think they meant that the Chinese force foreign firms to train local workers (KNOWLEDGE) and force them to make parts of what they sell to China locally and force th
...direct investments (FDIs) to maximize the transfer of knowledge and technology to its State Owned Enterprises...