CONSTRUCTION JOINT VENTURES IN CHINA : A SINGAPORE EXPERIENCE

Abstract

This is an exploratory study on six Singapore based companies having joint ventures in different cities of China. These firms have their core business in construction and hotel management. The study attempts to understand the motives and the objectives of the 6 Singapore based construction companies to venture into the China business areana. It also examines the main problems and issues facing these firms in setting up joint ventures in China. It focuses on their preparation works, the negotiation process, the nature of their economic activities, the performances and safeguards of their investments. The views of these firms on the longterm prospects and the future of their joint ventures in China will be discussed. From the experiences of these firms in China, some useful insights and guidelines could be drawn up for prospective firms contemplating joint ventures in China. In particular, the critical success factors in negotiation, the type of preparation required, the criteria for selection of partners and the safeguards for the investments are highlighted.