Managing business risks in China

In the past two decades, the rapid economic growth in China has triggered an upsurge of foreign direct investment. Attracted by the enormous market potential, foreign investors have poured into the country but not everyone has been rewarded with the promised handsome profits, due to unforeseeable forces. Based on recent research involving Sino-foreign Joint Ventures, this article seeks to highlight the potential problems investors might encounter when they do take their business to China. Measures that may be taken to minimise the impact of these problems and their associated risks are identified and emphasised.