During the first 25 years of China’s opening up process, joint ventures were the favored vehicle for FDI in China. In 2005, the favored form of investment shifted away from JVs to direct investment through WOFEs (Wholly Foreign Owned Entities). During the last year, however, foreign SMEs have been shifting away from WFOEs and back… Continue Reading
Tag Archives: Joint ventures
China’s Views On Investment. Part II. Joint Ventures.
Posted in China BusinessBy: Steve Dickinson This post is Part Two in our two part series on how Chinese companies typically view investments and how this view impacts Western companies that invest in Chinese companies, and even how this can impact all companies doing business in China. As I explained in Part One of this series, Chinese companies simply do… Continue Reading
How To Handle Chinese Negotiating Tactics
Posted in Legal NewsBy: Steve Dickinson We have been drafting an increasing number of contracts for foreign companies licensing their concept or technology for use in China. In the old days, this type of licensing was primarily in the industrial sector. These days, most of our work has been on licensing agreements in the services sector in China…. Continue Reading
Foreign Investment In Chinese Movie Theaters
Posted in China Business, China Film Industry, Legal NewsChina now has the second biggest box office market in the world and the third biggest film production industry in the world. As you would expect, here in China we are seeing an upsurge in foreign interest in the domestic business of movie theaters or cinemas. This interest is driven by the sheer rate of… Continue Reading
China VIEs. The End Of A Flawed Strategy. An Update/Rebuttal.
Posted in China Business, Legal NewsYesterday, co-blogger Steve Dickinson wrote a post essentially excoriating VIEs. That post went live early this morning. A few hours before our post went live, Bill Bishop (who knows as much about China’s tech industry as any human being alive) wrote a post essentially saying that those who are trashing VIEs are engaging in scare… Continue Reading
The Third Stage Of China Business. Chinese Investment In YOUR Company.
Posted in China Business, Legal NewsI love it when I read something that tells me what I already knew, but simply had not realized. That happened to me today when I read a post on the Asia Healthcare Blog by my friend and fellow-Seattleite, Benjamin Shobert, entitled, “Life Sciences Companies Go to China to Raise Capital.” Ben sets out the… Continue Reading
Why Is China Cheaper? Truths And Myths.
Posted in China BusinessGot an email from a client/friend yesterday with a link to an Industry Week Article and a note saying that i needed to give this “CLB’s dumbest article of the month award.” We do not actually have such an award (should we?) so for that reason alone, it is not in contention. Bad articles on… Continue Reading
It’s Your Business. Not Your Chinese Partner’s.
Posted in China Business, Legal NewsIf you are a foreign business, it will not be easy or cheap for you to set up a business to operate legally in China. The following is just the most basic of lists of what you need to do to set up and operate legally in China: Register your legal entity in China. This… Continue Reading
The Fake China Joint Venture, Made Real Through Marriage?
Posted in Legal NewsJust got this email, which is not too dissimilar from other emails and phone calls I have previously received: Like I said before, I’m really enjoying your series on China Law Blog on starting a business in China. It’s something I might try myself someday. I’d be really interested in hearing about a foreigner starting… Continue Reading
The China Joint Venture. It’s BACK!!!
Posted in Legal NewsAmCham China just posted an interview here [mp3] of me regarding the return of joint ventures to China. Josh Gartner conducted the interview and he did a great job. Though joint ventures obviously never left China, there has definitely been a post-recession resurgence. Whereas in the past, most American companies that did joint ventures in… Continue Reading
China Joint Ventures And Really Bad Milk. What Can You Do?
Posted in Legal NewsCLB’s own Steve Dickinson was interviewed today by New Zealand newspaper, The Dominion Post, regarding Sanlu melamine tainted milk, in an article entitled, “What Fonterra Didn’t Know.” Some facts first. Wikipedia tells us this about Fonterra: Fonterra Co-operative Group Ltd (NZX: FCGHA), generally known as Fonterra, is New Zealand’s largest company by turnover. A cooperative,… Continue Reading
Beware The China Joint Venture
Posted in Legal NewsRegular readers of this blog know I am not a big fan of Chinese joint ventures. Though they are sometimes required under Chinese law for entry into China and they are also sometimes a near necessity for business reasons, they should generally be avoided if possible. Some incidents over the last few months have really… Continue Reading
Update To China Counterfeiting And Piracy — The Issue And The Challenge
Posted in Legal NewsOnly a few hours after finishing my post on Timothy Trainer’s speech at the recent USPTO seminar on protecting your IP in China, I came across an interesting article on a Texas shoe company having problems with its China IP that quotes Mr. Trainer extensively. Entitled, “China Slow to Pursue Fakes, Texas Shoe Company Finds,… Continue Reading
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