| cl | | | | then a joint venture can be established basically. |
| Compared with other forms of investment, the | | | | Thus, joint venture has been an important way of |
| advantages of setting up a joint venture are as | | | | foreign investment so far. However, without a |
| follows: the existing plant, equipment and | | | | clear knowledge of China's legal system |
| technology of Chinese companies, and even their | | | | immodestly, or without due diligence investigation |
| market share and brand, can help foreign | | | | of their partners, or in order to register efficiently, |
| investors to expand their extension in China | | | | foreign investors usually acquiesce their Chinese |
| market, and finally obtain profits. Because the | | | | partners or Chinese agencies to sign files, and |
| Chinese enterprises have the legal requirements | | | | thus hidden risks would be buried under the |
| to establish a company, foreign investors only | | | | development of venture. |
| need to invest foreign funds or technology, and | | | | |