Joint Ventures, in this specific context, refer to a registered legal entity cooperation between at least one foreign investor and Chinese investor. Previously, this structure was more common, though it has been steadily decreasing due to the disadvantages set out below.

Joint Ventures can be classified into two different types:

Read the rest of “China Business Vehicles: Part III” or post a comment >>

Starting from 1 December 2004, a new investment vehicle has been available to foreign investor – Chinese government allow and encourage foreign investor to set up “Foreign Investment Commercial Enterprise”(FICE) in China to conduct wholesale, retail, and other permitted businesses. Such a type of business entity possess of the total right of trade and business. It can conduct import/export activities by itself, independent of the local import and export company or setting up a manufacturing company.

Read the rest of “Registration of a FICE in Shanghai” or post a comment >>

Wholly Foreign Owned Enterprises (WFOEs) or limited liability companies whose investors are purely foreign are quickly becoming the most popular method of foreign investment in China. While foreign companies once thought (and were often compelled by laws) that a local partner was necessary to operate business in China, this is increasingly no longer the case in a wide range of industries.Characteristics of WFOEs:

Read the rest of “China Business Vehicles: Part II” or post a comment >>

J.P. Morgan’s recent decision to hire Elaine La Roche as its China vice-chairman may have not been a difficult one, given her qualifications as a former chief executive of China International Capital Corporation.

Leading the large, successful, foreign-owned investment banking business left no shadow of a doubt on her capabilities, with many public decisions and achievements made through her run.

Read the rest of “Hiring from the Unknown” or post a comment >>

While domestic companies have a wide range of alternatives in establishing business operations in China, foreign companies are more restricted, with the most common business vehicles for foreign investors being:

- Representative Offices
- Wholly Foreign Owned Enterprises 
- Joint Ventures (Cooperative and Contractual)

Read the rest of ”China Business Vehicles” or post a comment >>