Thirty Years of Turbulence - Chinese Enterprises

作者：admin  点击次数：29  发布时间：2025-11-14

Since the promulgation of this regulation in 1979, the Chinese government has approved 105 joint ventures and introduced approximately $200 million in foreign investment. Last year, less than 10 new transactions were signed, and most joint ventures were stuck on small-scale projects such as photo studios, which did not contribute much to the modernization process. ”Such criticism is speechless, as the data it provides shows that the $200 million investment achievement is far from the goal of "attracting $10 billion within five years" set three years ago.

In September, the long-awaited "Implementation Regulations of the Law on Sino Foreign Joint Ventures" were finally introduced, which clearly stipulated the joint ventures and business activities of foreign-funded companies in China. This open-minded and positive attitude has been welcomed by the international community. 3M Company in the United States should be one of the earliest foreign-funded companies to feel this change. Its representative came to China for negotiations, hoping to establish a wholly-owned manufacturing factory for insulators. He proposed a "three no principle": no joint ventures, no technology transfer, and no product export. This was simply not feasible in China a year ago. However, this time, the Shanghai Investment Trust Company, which was negotiating, did not immediately refuse. The Chinese side tactfully suggested whether a pilot project could be launched first, and when the central government allowed foreign companies to establish single ownership companies, all equity would be transferred out.