Entering China: An Unconventional Approach – article by Wilfried Vanhonacker - blog by Karl Janowski
This article was published in Harvard Business Review
EJVs are the conventional way to enter China but often they do not give corporations what they need to succeed.WOFEs are the way to go as long as companies can find guanxi (political and personal connections).
China more concerned with what companies bring to the deal not how the deals are constructed
Every Chinese company operates under local, regional, and national government regulations which all have their own agendas, not many EJV partners can bring a national presence to the table
Conflicting Perceptions
Most Chinese companies lack experience to keep up in fast pace market
Companies do not know how much technology to share in EJVs
Many Chinese seek shorter-term profits (than their partners) due to worry that capitalism may not last