Partnering In China The Right Way...

CLIENT: Equipment manufacturer.


The company was trying to establish a joint venture in China and was having trouble evaluating the best structure and conducting due diligence on potential partners. They had discussions to establish a joint venture with a Chinese company that had strong trading experience in the industry. But the potential Chinese partner had no experience in manufacturing and servicing equipment. The Canadian company believed a joint venture with a Chinese partner was needed to enter the China market, and the potential Chinese partner was aggressively pursuing the Canadian company to establish one with them.


China is one of the world’s three largest markets for their product. If the Canadian company is to establish a global leadership position for this new product, they must have a significant market position in China.


We evaluated their approach to China and recommended they reconsider their strategy, providing four deliverables to them, including:
•Facilitating re-development of the Canadian company’s strategic priorities and direction in China.
•Finding a more appropriate potential joint venture partner that better met the Canadian company’s needs.
•Locating an independent China-based project manager with direct experience in their industry segment who could provide hands-on management of the Canadian company’s requirements during the joint venture’s viability assessment and start-up period, giving the Canadian company in-China management input independent of their potential partners during critical start-up phase, and
•Introducing the Canadian company to legal and accounting professionals who could meet its unique needs.


The Canadian company saved more than $500,000 by not concluding a deal with an inappropriate partner in China. We introduced a professional, honest partner in China whose strategic direction compliments that of the Canadian company.