Global Leadership Blog

Global Expansion: Joint Venture with China

The Graduate School of Management at UCDavis first-year MBA candidates completed a case with their advice on how to approach a joint venture with China. The follow was written by: Nitya Tamizhmani, Jolin Tiffany Tan, I-Wei Wu, Jacky Zhao, Kevin Wen, and Mark Zabezhinsky

JOINT VENTURE IN CHINA

Your company would like to expand into China, but they are not sure how to enter the market. Discuss and find solution/strategies for the following challenges:

  • What are the first three steps to take in order to establish a connection and business partner in China?
  • If time: Discuss strategies that would ensure continued success.

RESPONSE:

The first step a company should take to establish a connection and business partner in China is a thorough research and market analysis of their industry in China. Next, conduct research to know what models other companies have employed to start a joint venture in China. Only with that comprehensive knowledge can a company then reach out and establish a connection and business partner in China by utilizing the following strategies simultaneously:

  1. Engaging a company’s first degree network, its employees, to see if anyone already has an existing relationship within China that can be expanded upon.
  2. Second, reaching out to a company’s network of trusted vendors, clients and business partners who may already be doing business within China and are willing to make an introduction on a company’s behalf.
  3. Third, attending industry specific Expos and Association events and directly targeting businesses from China whose members are open to new relationships and will be responsive to incoming inquiries. Information about useful Expos and associations can be found at the following websites:

After a partnership is established and the joint venture is progressing, the following strategies will ensure continued success in China. Government support and involvement is crucial for businesses to succeed in China. To obtain that support, companies should invite retired Chinese government officials to join any joint venture’s board of advisors. Serving as lobbyist on behalf of joint venture, they will ensure a relationship with the government and a certain amount of lawful protection for a company to operate under. Once that relationship with the government is secure, a company can move forward by appointing a task force that will train its Chinese employees and figure out which product or service has the best prospect of succeeding.

A second group at the Graduate School of Management at UCDavis first-year MBA candidates added their tips as well on how to approach a joint venture with China. The follow was written by: Jason Parsiani, Sherry Si, Sanjana Patel, Nandhini Raghunathan, Seth Staton, Philip Menges, and Ming Ee Ong

Developing Business Partner in China

1)     Research industry to hire potential connectors that are very well connected in China.

2)     Interface with government officials to develop relationships, get connected with relevant conferences  and associations and further

3)     Forge business contacts with physical presence (dinners and recreational activities)

Melissa Lamson

About The Author

Melissa Lamson, Founder and President of Lamson Consulting, is an author, consultant, and speaker who accelerates the business expansion goals of today’s most successful companies by developing global mindset, refining leadership skills, and bridging cross cultural communication.
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