Comments on: China Joint Ventures Rehabilitated? Big Business Thinks So

By: Richard Thomas

Richard Thomas — Wed, 12 Nov 2008 08:39:57 +0000

Chris,

You have done a superb job, as always. Thanks for being the one person out there who consistently tells it like it is on China. While everyone else is out there talking like they know what they are doing, you are the one guy who walks the walk and talks the talk and gives us the information we all so badly need. Thanks a million for always being such a paragon of virtue and knowledge in the China business world.

By: Steve Ng

Steve Ng — Sat, 01 Nov 2008 03:04:46 +0000

USD2 Billion a year sales from BASF and Cat speaks for itself about the potential potency of JVs in China as cash cows. It takes a lot of effort to get them right though, which is why you need deep pockets and patience.

By: david L

david L — Wed, 29 Oct 2008 17:02:19 +0000

I think you’ve hit the nail on the head here – JV’s are really the preserve of MNC’s with big pockets and as such can be highly profitable and give, after time, an excellent ROI. The bad press comes in the main from small investors who didn’t know what they were doing, were looking to cut a few corners and didn’t think the thing through properly. There are of course exceptions of both sides of the fence. But with JV’s you really have to know what you’re doing and have a credible, government linked partner.

By: Mark Pegler

Mark Pegler — Wed, 29 Oct 2008 15:32:39 +0000

Sales of 2billion a year is good business. I’d like to know though how much Cat and BASF have actually invested in China so far to enable them to get to that stage, the REAL costs. I suspect its more than just the investment in the JV. Still, it looks like its finally paying off for the MNCs.

By: Frank Chan

Frank Chan — Wed, 29 Oct 2008 07:46:53 +0000

CLB has always been a “scare the punter about China so hire me to protect you” type blog deal. But JVs simply are not suitable for investors with small pockets or little experience. But looking at those results, USD2billion in sales per annum is impressive on the part of the MNC’s, those big initial investments now they are paying off. Its good to see a bit of decent press about what has often been a controversial legal structure. JVs have their fans amongst corporate counsel, where its all about long term views and sustainable profitability. China has always been a long term investment and JVs are certainly all about that. Nice to know about Cat making some decent money at last! Just goes to show you can never write off anything about China business, and that JV with a good strategic partner is more likely to get you there in the end.