In the 1980s, the Communist government in China sought to
accelerate economic growth and institute economic reforms by
increasing productivity and introducing free enterprises and free
markets. Requiring foreign capital, a system for joint ventures was
established to allow foreign companies to form partnerships with
Chinese firms in a variety of business and production activities.
This work examines the legal, business, and practical issues
involved in undertaking and maintaining joint ventures in the
People's Republic of China, offering guidance on the laws,
regulations, and procedures governing such ventures, and the effect
of the Tianamen Square incident on these business vehicles.
The work is divided into six chapters, each addressing a
different aspect of joint ventures. Chapter 1 places the subject
into a historical context, tracing how these ventures emerged as a
part of economic reform and what guidelines were established to
ensure their value to both participants. Chapter 2 details the
methods by which the government translated the ideas and policies
into national and local legislation, and lists and explains a few
basic statutes. The procedure for establishing a joint venture is
fully described in chapter 3, from finding a Chinese firm to
sharing the profits and eventually dissolving the partnership.
Chapter 4 explores the nature, activities, and success of joint
ventures from 1979 to 1987, while Chapter 5 focuses on the Tianamen
Square incident and the shift in government policy that followed
it. A final chapter provides summary observations on the investment
environment in China and the impact of joint ventures on the
country's economy. This book will be an essential reference source
for courses in international finance and trade, Asian and Chinese
studies, and development economics, as well as for finance
professionals involved in multinational enterprises. Public and
academic libraries will also find it to be a useful addition to
their collections.
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