Managing a joint venture in China can be a challenging experience. Here Jonathan Reuvid explains how the formation of the Jinan Fuqiang Power Company proved to be successful, although not entirely in the way the partners had anticipated. IN EARLY 1995, a UK Midlands-based engineering company engaged in the re-manufacture of automotive engines was invited to replace the US partner in an approved joint venture to re-manufacture engines in China. China National Heavy Duty Truck Company (CNHTC), located in Jinan, Shandong Province, had been chosen by the State Council, to which it reported at that time, to establish an equity joint venture (EJV) to introduce engine re-manufacturing techniques and skills to China by engaging with a foreign company. The US company that CNHTC had chosen, owned by Chinese expatriates, had failed to make its equity contribution after approval of the joint venture.
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