Leaf Leaf

A joint venture is an investment vehicle available in China for the foreign investor(s) accessing to the Chinese market together with its Chinese partner(s) for specific tasks.

Joint ventures are necessarily set up between one or several foreign investor(s) and one or several Chinese investor(s). 

– Equity Joint Ventures (EJVs)

Joint ventures companies are divided between the Equity Joint Venture (EJV) Company and the Cooperative Joint Venture (CJV) Company. The main difference lies in the fact that the amount of risk and profit shared between both parties is determined by capital investment in an EJV. Whereas such amount is contractually agreed in a CJV.

– Cooperative Joint Venture (CJVs) –

CJVs are very similar to EJVs. But the investors have the option to incorporate an entity with a separate legal personality and limited liability. They can also to set up a partnership structure with no separate legal personality and unlimited liability. CJVs are useful for infrastructure projects, and other projects in water treatment, oil exploration and mining for example.  

To know more about other structures, download our legal handbook related to foreign investment in China…

06 Aug 2019  - 
Incubators and accelerators

During recent years, incubators and accelerators became buzzwords with entrepreneurs who are looking for ways to start a business from scratch. The numbers of these startup support facilities in China... View Article

16 Jul 2019  -  Private Equity
Crowdfunding options for startups

The technological advancements in recent years have allowed startups and established companies to launch and expand their businesses through attracting financing from private individuals and institutional investors in the form... View Article

15 Jul 2019  -  M&A
Mergers & Acquisition in China: How to decide between Asset deal or Equity deal?

Equity deal: What are the pros and cons? Pros • Acquiring an operational business: acquiring equity does not require numerous separate approvals of each individual asset because the title of... View Article