Inside Joint Venture
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In the competitive automobile market, many foreign automobile companies are seeking more business opportunities overseas by establishing joint venture with local car manufactures in China. Under the pressure of losing their competitive advantage in the market, foreign companies are seeking a way to protect their intellectual property. At the same time, how to effectively develop their own technology research and create a new product generation without crossing the boundary of foreign companies' intellectual property left a difficulty task ·for Chinese manufactures and government. Foreign investors have brought benefits, such as excessive foreign capital flow and technology development into the collaboration. However, both foreign and domestic manufactures have their own fear in this competitive market that prevent full involvement in the joint venture. In this study, we will take a close look at these issues in joint venture as well as analyze the potential effects reflected on the Chinese domestic industry.