Joint Ventures in China face new rules of the game: Economic and legal changes require a different approach from both new and existing joint ventures

Joint ventures between foreign enterprises and business partners in the People's Republic of China are confronting new economic and legal conditions. The new conditions require changes in the way that existing JVs operate and that new JVs are structured. Companies planning to form JVs in China are therefore advised to move quickly, establish a reliable foothold, search for alternatives to bank financing, maintain good relationships with the authorities, be prepared for their partner becoming privatized, invest in quality, and offer state-of-the-art technology.