We use our own and third-party cookies to optimize your experience on this site, including to maintain user sessions. Without these cookies our site will not function well. If you continue browsing our site we take that to mean that you understand and accept how we use the cookies. If you wish to decline our cookies we will redirect you to Google.
Already have an account? Sign in.

 Remember Me | Forgot Your Password?

Four Keys To Profitable Joint Ventures In China And India

March 1, 2010: 03:53 AM EST

As the economies of China and India continue to grow rapidly, multinationals are forced to navigate a variety of market challenges and government regulatory obstacles. Key problem: complex partnership rules bar controlling ownership of certain entities by foreign companies. So firms seeking to extend and deepen commercial relationships with the two economic giants must find ways to operate joint ventures profitably and maintain adequate strategic control. Drawing from examples of past JVs gone sour, this article tells how to structure and manage partnerships in China and India: separate JV operations into different components, each with a different partner; make sure partners agree with your strategic goals; retain the power to name key managers and to view operational info; and secure control of the “ecosystem:” companies that supply with parts or services.

Anil K. Gupta and Haiyan Wang, "How to Avoid Getting Burned in China and India", Business Week, March 01, 2010, © Bloomberg L.P.
Cultural Mixing
North America
United States of America
Companies, Organizations
Deals, M&A, JVs, Licensing
Legal, Legislation, Regulation, Policy
Market News
Research, Studies, Advice
Developed by Yuri Ingultsov Software Lab.