Managing Sino-French Joint Ventures in the Chinese Market: Performance Implications

In 1979, the Chinese government published the first law authorizing foreign direct investment (FDI) in the form of equity joint ventures.1 Since then, other forms of foreign investment have been authorized, notably cooperative joint ventures and wholly owned foreign enterprises. The three forms of enterprises, known in China as foreign invested enterprises (FIEs) to distinguish them from their local counterparts, are widely adopted by Western companies.