1. Enjoy resources * * *, complement each other's advantages, make full use of China enterprise network and established famous brands, and smoothly enter the China market;
2. Joint venture can enable foreign investors to take advantage of the geographical advantages of China enterprises, reasonably and legally reduce various financial expenditures and greatly reduce operating costs;
3. Enjoy the preferential treatment of foreign investors.
Disadvantages:
1. Shareholders have less control rights, and their rights are distributed in proportion to the joint venture amount;
2. There are many viewpoints, which are not easy to integrate;
3. There are many regulatory departments to report troubles.
Extended data:
Characteristics of Sino-foreign joint ventures:
1. registered according to law. Take the Joint Venture Law, Company Law and regulations as the legal basis for the establishment of the company.
2. Implement the examination and approval system. A joint venture must be jointly established by Chinese and foreign investors. The project must be approved by the government examination and approval authority.
3. Limited liability. Organizational form of joint venture limited liability company.
4.*** Same as management.
5. Production and business activities are included in the special national norms. If equipment and raw materials can be purchased from the international market; Direct export of their own products and so on. Have certain advantages.
6. Located in China, it is a legal person in China.
Baidu Encyclopedia-Sino-foreign joint venture