Joint ventures in the Peoples's Republic of China

Rights statement
Awarding institution
  • University of Strathclyde
Date of award
  • 1999
Thesis identifier
  • T9587
Qualification Level
Qualification Name
Department, School or Faculty
  • This research reviews the development of JVs from the 'open door' policy of 1979, when China allowed inward investment to acquire the modernising influences of advanced technology, finance, management, and access to export markets, in exchange for providing access to lower production costs and the opportunity of entering and developing China's domestic market. The acquisitive motive underlying China's strategy was clear at the outset from the basis of negotiation on the value of the respective inputs of the partners, and in that up until 1986 entry was allowed only by way of locally participated JVs, which were subject to targets and controls imposed by the authorities. As foreign partners became more familiar with the local environment, the involvement of the authorities became viewed as a limitation to self-determination and a deterrent to participation in JVs in China. The authorities responded to maintain continued fdi by gradually liberating both sectors and entry modes, such that foreign equity majority, foreign management control, and wholly foreign owned enterprises are commonplace. A large scale review of the subject literature and an in-depth analysis of case studies have revealed that some limitations to JV autonomy still exist, although it is found that newer JVs are subjected to fewer targets and controls. The main problems are identified as being in the partner interdependence, regulation and environment, and legal and infrastructure areas. The analysis of effective strategies has identified that management control and proprietary knowledge retention strategies ; target and control, and cultural compliance ; the registration and retention and licensing of proprietary rights, and the creation and development of distribution channels and appropriate marketing strategies, enables JVs to achieve performances comparable to those in other locations. A variety of implications for both of the parties and the authorities concerned have been identified by this research, as have numerous areas for future research.
Resource Type
Date Created
  • 1999
Former identifier
  • 560910