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Does it mean "Western equipment manufacturershave to transfer China manufacturing technology"?

"First, he believes the heavy hand of a state-owned enterprise is the wrong approach to cracking into the global commercial aircraft business. Second, he maintains that partnering with Western equipment manufacturers under preconditions such as a requirement of Chinese manufacturing will add risk and ultimately not bring the most current technology, due to intellectual property concerns."

Source: http://www.cnbc.com/2017/05/08/chinas-new-passenger-jet-is-not-seen-as-an-immediate-threat-to-boeing-airbus.html

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a requirement of Chinese manufacturing

Means that it might be a precondition by the Chinese that a Chinese company manufacture the parts, instead of buying the fully made parts from a Western firm, by doing so the Chinese company will gain knowledge of the manufacturing intellectual property.

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