Using a Chinese Entity for an All-foreign Joint Venture in China _ Does it Make Sense?

| BY

clpstaff &clp articles

The merger of separate foreign-invested joint ventures in China is a recent development in PRC company formations.

By Paul, Hastings, Janofsky & Walker LLP Shanghai Office

Foreign investors for many years used Sino-foreign joint ventures as a way to enter the Chinese market, either by choice or because Chinese law required it. In recent years it has become more common for foreign investors to own 100% of their China operations. Where two or more foreign parties combine to engage in China operations, the usual question that arises is: where should the joint venture entity be organized?

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