The JV is back!

Joint Ventures (JVs) were the first business entity opened to foreigners and for a long time have been an unpopular vehicle for international investors looking to China for lower production costs or for market access. Yet recently, we notice more than ever before, there are an increasing number of foreign investors wanting to set up a JV in China. JVs are coming back!

The Joint Venture often sounds like a warm and friendly way of doing business, a marriage made in heaven. You are likely to be offered many such wonderful sounding deals. Many Chinese factories are looking for long-term security in foreign sales via an overseas partner, or to get access to western technology. And because this structure has been around for a long time, many foreigners who have not yet done business here have heard about it. It sounds much more attractive conceptually than the main alternative, a Wholly Foreign Owned Enterprise.

But wait, China?s business history is littered with thousands of cases of unhappy partnerships and broken dreams ? the analogy with human marriage is a common one, with the popular Chinese idiom ?same bed, different dreams? often quoted. One major Western oil company once told us, only partly in jest, their JV was a win-win situation ? meaning the Chinese won twice. Business is not about being warm and friendly; it is about making profit and running a successful company. You may well end up becoming close friends with a commercial partner, but it is not the primary objective.

Next :
Structuring your JV – General issues


To know more, the whole issue is available (after a free subscription) on China Briefing website with others archives
For more information on China’s legal and tax issues or to ask for professional advices in related matters, please write to info@dezshira.com

0 comments

Add your comment

Commenting is allowed only for registered users.

Other articlesgo to homepage

Trends in the Chinese Online Education Industry

Trends in the Chinese Online Education IndustryComments Off

The Increase of China on the net Training Market place Income of online training sector in China achieved 84 billion Yuan in 2013, with a 19.9%-growth from 2012, based on the 2013-2014 China On-line Education Report unveiled by iResearch. The huge Potential of China on the internet Education Market place The 3 key engines are

US$1.8 Trillion : the Chinese Consumption by 2021

US$1.8 Trillion : the Chinese Consumption by 2021Comments Off

Luxurious manufacturers in China have had to deal with down a slowing financial system for many time, but a brand new report by Boston Consulting Group (BCG) and Alibaba Group’s study section, AliResearch sheds a more constructive light-weight on China’s purchaser economic system. By 2021, Chinese people are envisioned to add US$1.8 trillion in new

China Structure – Joint Ventures

China Structure – Joint Ventures(0)

Forming a joint venture in China can be a successful endeavor as long as each side?s goals, contributions and responsibilities are mutual and understood.

China Structure – Foreign-Invested Commercial Enterprises

China Structure – Foreign-Invested Commercial Enterprises(0)

Foreign-invested commercial enterprises are capable of conducting the following activities: Import, export, distribution and retailing Retailing ? selling goods and related services to individual persons from a fixed location, as well as through TV, telephone, mail order, internet, and vending machines Wholesaling ? selling goods and related services to companies and customers from industry, trade

China Structure – Wholly Foreign-Owned Enterprises

China Structure – Wholly Foreign-Owned Enterprises(0)

The wholly foreign-owned enterprise has become the investment vehicle of choice for the international investor wanting to manufacture, service or trade in China.

read more

Contacts and information

Social networks

Most popular categories

Real Time Analytics