Doing Business in the People’s Republic of China

A variety of barriers face foreign joint venture (JV) operators in the People’s Republic of China (PRC). Among these are issues that relate to business and investment laws and regulations, which by default include the foreign investment enterprise (FIE) business vehicles. In this context, one could...

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Bibliographic Details
Published in:The Cornell hotel and restaurant administration quarterly 2005-05, Vol.46 (2), p.125-152
Main Authors: Kivela, Jaksa, Leung, Lin Fung-Lin
Format: Article
Language:English
Subjects:
Business models
Corruption
Endorsements
Foreign business
Foreign investment
GDP
Gross Domestic Product
Hospitality industry
Hotels & motels
International markets
Investors
Joint ventures
Market entry
Multinational corporations
Negotiations
Partnership agreements
Regulation
Strategic management
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Summary:A variety of barriers face foreign joint venture (JV) operators in the People’s Republic of China (PRC). Among these are issues that relate to business and investment laws and regulations, which by default include the foreign investment enterprise (FIE) business vehicles. In this context, one could argue (and legal experts tend to agree) that unless a suitable business vehicle is selected by the FIE, or if the FIE is not correctly set up, the venture may become highly vulnerable to closure and possible litigation, irrespective of whether the organization is well managed. The most likely route for international hotel executives to establish a foreign business venture in the PRC is via a JV. The key to establishing a JV is appropriately conducted business negotiations with prospective Chinese partners.
ISSN:0010-8804
1938-9655
1552-3853
1938-9663
DOI:10.1177/0010880404274006