Executive Briefings

Solving the Maze of Mergers & Acquisitions in China

It used to be that the only way for multinational corporations (MNCs) to enter China was through a joint venture with a local Chinese partner"”typically a government-appointed, hopelessly backward state-owned enterprise. Foreign ownership was capped at 50 percent, and MNCs faced numerous hurdles, such as local supplier requirements and mandatory technology transfer agreements.

Today's MNCs have more options, including majority joint ventures, wholly owned foreign enterprises, and, in most sectors, outright acquisitions of local Chinese companies. At the same time, many of the old restrictions have been lifted or modified. But despite this progress, creating successful Sino-foreign partnerships remains as challenging as ever. Even well-known MNCs with extensive M&A experience stumble"”sometimes badly.

What's causing their missteps? All too often, Western executives simply lack the in-depth knowledge required to navigate the countless pitfalls unique to China's business environment that they are sure to encounter, from the pre-deal phase through the post-merger integration.

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Keywords: supply chain, supply chain management, U.S.-Sino business relations, Chinese joint venture partners, doing business in China, China business environment

Today's MNCs have more options, including majority joint ventures, wholly owned foreign enterprises, and, in most sectors, outright acquisitions of local Chinese companies. At the same time, many of the old restrictions have been lifted or modified. But despite this progress, creating successful Sino-foreign partnerships remains as challenging as ever. Even well-known MNCs with extensive M&A experience stumble"”sometimes badly.

What's causing their missteps? All too often, Western executives simply lack the in-depth knowledge required to navigate the countless pitfalls unique to China's business environment that they are sure to encounter, from the pre-deal phase through the post-merger integration.

Read Full Article


Keywords: supply chain, supply chain management, U.S.-Sino business relations, Chinese joint venture partners, doing business in China, China business environment