Chinese joint ventures are a mechanism for forced transfer of technology. In many cases, technology transfer through China`s Foreign Direct Investment (D) regime, which covers important economic sectors for foreign companies, is indeed necessary. To access these sectors, China requires foreign companies to create joint ventures with non-linked Chinese companies. Major joint ventures include MillerCoors, Sony Ericsson, Vevo, Hulu, Penske Truck Leasing and Owens-Corning – and in the past Dow Corning. Joint ventures are risky forms of business partnerships. The economic and management literature has paid attention to various factors of conflict and opportunism in joint ventures, in particular the influence of the control structure of mothers, of change of ownership and the volatile environment.  More broadly, joint ventures contain a “hidden face” related to potential negative consequences, unethical behaviour and ill-intentioned organizations.  Some of the themes of a shareholders` pact are: ()-Financial Vventures by EJVs/CJVs () -Approved JVs This is a legal and difficult area because the laws of countries are different, especially with regard to the opposability of heads of or shareholder agreements. For some legal reasons, it can be characterized as a declaration of intent.
It takes place in parallel with other activities in the context of the creation of a joint venture. Although they have been briefly reviewed by a shareholders` pact, some issues must be treated as a preamble to the ensuing discussion. There are also many topics that are not included in articles when a business starts or is never present. In addition, a joint venture may decide to remain alone as a joint venture in a “quasi-partnership” to avoid non-negligible disclosure to the government or the public. Parties to EJV, CJV or WFOE establish a workable study that has been described above. It is a non-binding document – the parties have the freedom to choose not to proceed with the project. The feasibility study must cover the fundamental technical and economic aspects of the project before the parties are able to formalize the necessary legal documents. The study should provide the details that were previously discussed as part of the feasibility study [citation required] (submissions from the Chinese partner).
The AJE law exists between a Chinese partner and a foreign company. It is available in both Chinese (official) and English (with the same validity) limited liability. Before China`s accession to the WTO – and thus the WFOe – the EJVs dominated. In EJV mode, partners share profits, losses and risks in proportion to their respective contributions to the company`s share capital. These degenerate in the same proportion as the increase in social capital. The other format of the CJV is similar to a partnership in which the parties jointly assume unlimited liability for the company`s debts without a separate corporation.