What Did Joint Ventures Leave Us? An Analysis of the Top 10 Failures of Sino-foreign Joint Ventures

Author: Li Guizheng Duan
Publisher:
Publish Date: 2005-03-01
Features: "Joint Venture," once a resounding term in our era! Back then, the fervor for joint ventures was so intense because both sides had huge expectations of future profits. Due to political, economic, cultural, and corporate-specific circumstances, this process clearly manifested as a three-stage, two-phase progression from "cooperation" to "joint venture" and then to "wholly-owned subsidiary." Marriage is always filled with sweet fantasies, while separation is filled with the pain of disappointment and loss. The qualitative change from joint venture to wholly-owned subsidiary staged a series of major failures in joint ventures between Chinese and foreign companies. Whether foreign-funded or domestic enterprises, their vibrant dreams were shattered by the gray reality. In terms of outcomes, many joint ventures in China ultimately faded away as both brands and channels disappeared, prompting foreign investors to embark on their own wholly-owned subsidiaries, while Chinese partners were left with nothing but money and outdated technology—or sometimes even no money at all. How many people have been drawn back into history, reflecting on the once-booming, now-melancholy memories? What have we truly gained? This book examines ten cases of failed joint ventures—such as Liwayway, PepsiCo, and Lenovo—all of which are familiar to contemporary Chinese people, with their products and services spanning every corner of the country. These joint ventures, which emerged in the mid-to-late 1980s, weathered nearly two decades of storms, with both sides experiencing gains and losses. The author not only details the course of each joint venture but also provides rational critiques from the perspective of economic globalization. This book serves as an invaluable textbook for modern enterprises.