Connections and partners for small joint ventures in China

Abstract

China's huge population and rapidly developing economy have attracted many foreign companies, but operating in China can be very difficult. Connections are a necessity for most firms, and this usually requires a partner. Finding partners in China is very easy, but finding good ones is very difficult. Most potential partners can be categorized into a few main types. Some overseas, Hong Kong, or Taiwan Chinese really do have connections and/or know how to operate successfully in China. More often, they do not. Some PRC companies, private or state, actually want an operating joint venture (JV). Many do not, they simply want the privileges that go with having a JV. Discusses connections, different types of partners, advantages and disadvantages of having them, and offers hints on how to tell the good from the bad.

Citation

Speece, M.W. and Kawahara, Y. (1995), "Connections and partners for small joint ventures in China", Cross Cultural Management: An International Journal, Vol. 2 No. 4, pp. 24-34. https://doi.org/10.1108/eb008398