By continuing you agree to eChinacities's Privacy Policy .
Sign up with Google
Sign up with Facebook
Q: Joint ventures - who gets what in case you break the partnership?
I know that for joint ventures, the company is basically registered in your Chinese partner's name, to facilitate with all the administrative stuff.
But how does it work if the partnership falls apart for whatever reason? Do you get 50%? Can they completely screw you over and take everything just like that?
What exactly protects the foreigner from losing his investment in the event his Chinese partner chooses to turn on him?
12 years 11 weeks ago in Business & Jobs - China
The arrangements for dissolution depends soley on the parties involved and the terms they agree to. Each case is different.
But, if they want to completely screw you and throw you out of your own company, they can if you are not very careful. (And even sometimes even if you are careful.)
The courts here will almost always side with the local. And that is if it makes it that far. I have heard stories where the local just sends a group of thugs to beat or scare the foreigner into giving everything to them.
As I said before, if you go with a JV, you better know you can trust that person with your life. Being called "brother" or "best friend" by them means absolutely nothing.
On every one of the cases I am aware of, at divorce time, the local wife kept everything that was on her name, even if going to local Court. Cars, business, bank accounts, apartments (including contents), etc. The foreigner were lucky to get their clothes and passports out.
So, whatever you do not want to loose, keep it in your name only.
