ABSTRACT
When Sover S.P.A., a small Italian spectacles maker, discovered that its Chinese partner, Suzhou Spectacles No. 1 Factory, sold pirated copies of the joint venture’s product in the domestic market, it proposed to liquidate its 50 percent-owned sunglass factory in Suzhou, China. The Chinese partner denied such allegations and refused to go along with the liquidation. The agreement called for unanimous approval on any dissolution by the board of the joint venture. When efforts to seek help from a high-level government bureau failed, Sover found itself stuck in the joint venture (Leung 1995).
