Joint Ventures in the People's Republic of China.
Author | Shim, Ki R. |
In the 1980s, a rapid economic growth became a paramount goal of the People's Republic of China. The Communist government in the mainland China instituted economic reforms by encouraging free enterprises and competition, adopting a market-oriented economy, and increasing productivity. In order to attract foreign capital and investment, the Beijing government established a system of joint ventures to allow foreign companies to form partnerships with Chinese companies for a variety of business and production activities in China. It was intended to induce foreign investments, through these joint ventures, to supplement the traditional way of raising foreign capital through commercial, industrial, and governmental borrowings from foreign banks and international agencies.
This book is divided into six chapters, each covering a different aspect of undertaking joint ventures in China. Chapter 1, "The Emergence of Joint Venture Enterprises," traces how the joint ventures system emerged as a part of the economic reforms and what guidelines were established to make the joint ventures beneficial to both sides. Chapter 2, "The Legal Basis for Joint Ventures," describes the ways the government translated the ideas and policies into national and local legislation to provide a legal basis for joint ventures. In essence, laws dealing with joint ventures were enacted by the legislature, regulations were set down by the central government, and rules and procedures were spelled out by the local governments. Chapter 3 "The Organization and Operation of Joint Ventures," covers the procedure for establishing a joint venture, from finding a suitable Chinese company, gaining approval of the government, hiring and firing workers, producing and marketing the products, and sharing the profits to eventually dissolving the partnership.
Chapter 4, "The Development of Joint Ventures," examines the experience of joint ventures in China...
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