Quote:
|
Originally Posted by CaramonLS
Actually, I don't think that is entirely true.
They set up a lot of "Joint-Venture" companies, where a foriegn business sends over a couple people, helps train the chinese to do the job and the way they do business - in turn, the foriegn investors make profits as they are the disturbutors for the merchandise internationally and can find markets for it.
Both parties prosper, because the government makes money as well.
As well, the people do infact learn skills, because they are involved in heavy industry - not exactly common place in most developing nations.
|
You're kind of reiterating what I said...maybe I didn't word it right. Yes, joint ventures are common (we're looking at one right now) and I was told through the consulate that you can own a business in China, but only for 5 years. Then the government steps in and takes over whatever your investment was. Not a big deal, because we would make back our original investment in 1 year, and the rest is pretty much profit. At the end of the term, we would either move into another venture somewhere else (in our case probably lower Mongolia) or continue to purchase from the company we used to partially own. We would have no ownership rights, but if you built your bridges properly you would enjoy a very profitable relationship.
I am assuming this business model is common for all types of industry in China, as every time I go over there I see factories set up producing everything from furniture to clothing and textiles....not just heavy industry.
Again, I'm only speaking from experience and what I see when I'm there. China is such complex country that what you hear in one town or city will be completely different in the next, and what people are taught in North America (especially tax or finance laws) seem to be open to interpretation as well as negotiation. Every time I think I have it somewhat figured out, in steps joe public official from Xinwiang province with an entirely different take on the situation.