Partnership Models with Chinese Companies
Once closed for tactical reasons, entrepreneurial partnerships are now increasingly emerging due to digitalization and globalization and the interdependencies they create. The objectives may still be the same: Upgrading intentions, competitive advantages, entry acquisition or synergy exploitation, to name a few. Here, China, today more than ever, holds immense potential for achieving its own goals within the Asia-Pacific region. With growing domestic consumer demand due to increased prosperity, China has opened the market to small and medium-sized enterprises. The framework conditions for this can be found in the Small and Medium-Sized Enterprises (SME) Policy Index . China's market is considered an exception: difficult to access and internally complex. Its enormous and above all sustainable growth and factors such as China's investment in industry and trade or its domestic demand are nevertheless attracting many companies. Internationally accepted operational strategies and partnership models, however, quickly run nowhere – China's relations are geared towards continuity. One has to be aware of the cost-benefit analysis, which does not show positive figures until two to three years after market entry at the earliest. Amortization is only achieved after four to five years. Cooperation partnerships are certainly possible and desired on the part of China, but the business transaction here is transferred to the Chinese partner, while the investment strategy remains indirect. It is direct in nature, on the other hand, when loose cooperation becomes a local joint venture (JV). China gives preference to mutual participation because capital and knowledge form its anchor points with regard to international partnerships and the long-term transformation of its own economic growth. High-tech companies willing to export have the greatest market opportunities.