Four Keys To Profitable Joint Ventures In China And India

As the economies of China and India continue to grow rapidly, multinationals are forced to navigate a variety of market challenges and government regulatory obstacles. Key problem: complex partnership rules bar controlling ownership of certain entities by foreign companies. So firms seeking to extend and deepen commercial relationships with the two economic giants must find ways to operate joint ventures profitably and maintain adequate strategic control. Drawing from examples of past JVs gone sour, this article tells how to structure and manage partnerships in China and India: separate JV operations into different components, each with a different partner; make sure partners agree with your strategic goals; retain the power to name key managers and to view operational info; and secure control of the “ecosystem:” companies that supply with parts or services.