ABSTRACT
The joint venture establishment process in China normally starts with the reservation of the chosen joint venture company name with the State Administration for Industry and Commerce (SAIC). The Chinese and international negotiators normally first negotiate and agree a relevant Memorandum of Understanding (MOU) or Letter of Intent (LOI) which would outline the key business principles of the future joint venture. In Sino-foreign joint ventures in China, it is normal practice if one partner has the nomination right for the board chairman, then the other partner should have the nomination right for the general manager of the joint venture. Proper financial management is one of the most important functions of the JV management team. Analysis of successful joint ventures in China shows that one of the key success criterion for Sino-foreign joint ventures in China is the quality and commitment of both the Chinese and foreign partners.
