- Item type
- Periodical
- Language
- English
- Source
- McKinsey Quarterly. 2003, Issue 3, p12-15. 4p. 4 Charts.
- Publication date
- 01/09/2003
- ISSN
- 00475394
The article presents research in the area of investment in Chinese business enterprises. The article notes that joint ventures with state-owned companies were the only way to invest in China, but the market is now opening to private ventures. The research shows, though, that investment in joint ventures in 2002 comprised almost a half of new foreign investment. The article explains why joint venture has been so successful by considering five sectors: automotive, basic materials, consumer goods and pharmaceuticals, energy, and high technology. The study looked at joint venture performance and how investors chose the investments they made. Investors considered partners who could add value, practiced sound financial and operational management, and those that could be reorganized if necessary.
