Doing Business in the People’s Republic of China

Abstract

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.