Expertise

Joint Ventures in China

China Joint Ventures have received a bad reputation due to a high failure rate and several highly publicized failures.

The most common mistakes made by foreign joint venture partners in China include:
  • Choosing the wrong partner
  • Not controlling and / or not monitoring the activities of the joint venture
  • Failing to build a shared understanding with the Chinese joint venture partner (even if the Chinese side is a fundamentally solid partner)
Almost invariably, these mistakes are a result of:
  • Insufficient due diligence; and / or
  • Underestimating the resources needed to control and monitor a joint venture in China

Since these mistakes are preventable, a China joint venture strategy should be considered in situations where a Greenfield investment (starting a business from scratch) or an outright acquisition of a Chinese company are not possible or attractive options. Stenvall Skoeld & Company help clients lay the groundwork for successful joint ventures in China. Our services include helping clients:

  • Choose better Joint Venture partners
    • Joint venture partner search and screening
    • Due diligence on joint venture partners
    • Stakeholder analysis
  • Confirm strategic opportunity and aligning the JV partners’ priorities
    • Opportunity assessment
    • Business plan studies
  • Develop strategies for controlling and monitoring China joint ventures
  • Safeguard know-how and intellectual property through operational initiatives

Stenvall Skoeld & Company also assists clients who have disputes with current joint venture partners.

If you are interested in retaining our acquisition target search services please email our Managing Director, Per Stenvall (email).