Sino-Foreign Equity Joint ventures (EJV) used to be the way to invest in China, especially in a certain number of strategic industries where it was the only alternative. Even until today, in many industries foreign investors need to set up a joint venture with a local partner before they get the relevant approvals. However, it has become easier since to set up a wholly owned foreign enterprise which gives 100% control to the foreign investors.
Even when not required, joint ventures can prove useful in industries such as retail and manufacturing by combining the foreign investor’s know-how with the Chinese partner’s local market knowledge and useful connections.
Setting up a joint venture is a complex and lengthy process which require in many times to go through the approval of multiple governmental organizations. Doing a due diligence of the Chinese partner(s), setting up and maintaining effective control systems require also a great deal of work. Sinovantage is experienced in this field, having completed tens of joint venture projects accross China: Beijing, Shanghai, Shenzhen, Chongqing, Chengdu, Guangzhou, Jiangsu Province, Zhejiang Province, Shandong Province etc.
Contact us today to get started on your China joint venture project.