Some time ago, I wrote a paper titled “Status And Effect of Cooperative Joint Ventures under Indian Competition Law” which was published in the Manupatra Competition Law Reports. During the course of research for the paper, I had come across a number of articles on Cooperative Joint Ventures in China. It seems they are considered a convenient method of doing business there. Therefore, as a post script to the paper, the following is a short post on the concept of Chinese Cooperative Joint Ventures and their utility under the Competition Law of China.:
Firstly, the concept of a Cooperative joint Venture is much the same as in any other jurisdiction, and so for a detailed discussion on the definition of the Cooperative joint Venture, kindly refer to the paper mentioned above.
Secondly, Cooperative Joint Ventures are common between foreign and Chinese firms as foreign entities consider them a convenient gateway into the Chinese market. They are in fact so popular, that there is a separate Law on Sino-foreign Cooperative Joint Ventures.
Thirdly, as to the advantages and disadvantages of entering into a Cooperative Joint Venture in China, it’s best to hand over the floor to Paul H. Folta, who has written an informative piece on Cooperative joint Ventures in China.
Indian Competition and Anti-Trust Blog 