Overview

Joint ventures in China are notoriously difficult to manage successfully. With control shared between often commercially competitive shareholders, opportunities for conflict are rife. As a result, it is not surprising that joint ventures have never been the preferred form of doing business in China. Other things being equal, it is almost always preferable to wholly own a subsidiary in China.

However, given the ongoing prevalence of joint ventures, it is as important as ever to actively manage their risks and shortcomings. In this article, Pinsent Masons offer some key lessons with the aim of mitigating the likelihood of disaster, or at least its consequences.

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