Joint Ventures in China
China is a playground for joint ventures and strategic alliances. The economic set-up is absolute: China mass produces affection products at actual low cost – America and Europe accept consumers who’ll pament top-dollar for those products. In the middle are companies who can generate a abundant deal of revenue from facilitating the export/import and product distribution, effectively connecting the sellers with the buyers.
Chinese manufacturers are alone too blessed to authorize joint ventures with companies who accept a marketplace for their products. Accustomed that production costs are low, joint adventure companies acquisition that they can distribute and sell products from China at a 70% or 80% profit edge, and still undercut the competition in their at ease country!
So, how accomplish firms in the ‘West’ action about establishing joint ventures with Chinese firms? The answer is to register an absorption with companies who specialize in matching joint adventure applicants at buttoned up. These firms accommodate the likes of JV Base (http://www.jvbase.com) in the UK.
Manufacturers, expert distributors and agents in China can be activate via these ‘matching’ companies. It makes the action of establishing a joint adventure accord actual accessible indeed.
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Originall posted October 17, 2012