Benefits for western from joint ventures China is a large market in the world (home to 25% of the worlds

population), it attracts more foreign countries to invest their money and set up their company. For example, joint ventures provide western companies great opportunities to access local market and contacts. China is an ultimate labor market that it satisfies any requirements at low cost. It is easy to obtain capital as china is driven by cash not credit because of china has 56% of global GDP in cash. Besides, joint ventures could support the Chinese government for the economy, development and improve their unemployment. However, joint ventures could share of resources and risks between business partners. Give some of examples, Tesco, Wal-Mart, and Procter & Gamble. Procter & Gamble Profit for China from Join ventures. There are 2 reasons so that equity joint ventures have become a common entry mode which is: joint ventures are believed to best serve the Chinese objective of foreign capital, technology, and management experiences. In addition, investor believed that joint ventures give them better opportunities to access domestic markets. Because of the first reason, China government has applied policies which encouraged joint ventures from 1978 until now. OCDE (2000) illustrated a more detail view of the impacts of FDI in China such as: improve comparative advantages in Chinas major structural weaknesses which are capital and technology intensive good, for example: machinery, engines, intermediate textile products, and plastic. In addition, FDI flow means new job created. The employment opportunities brought by FDI increased dramatically from 6.45 million workers in 1991 to about 24.26 million in 1998 (about 4 times increased). The research also proved that FDI has upgraded China labour. Relationship management issues that arise from joint ventures The growth of Chinese domestic market has brought a lot of opportunities for the western company. The market is widely opened to the western companies to go in and invest in China; however, the regulation has denied the 100% investment foreign fund so the foreigner companies decide to joint venture with Chinese companies to entry to the biggest market in the world. There are advantage and disadvantage in their relationships. The advantages come from the low labour, material costs and low facilities prices for the setting up and operation. The good communication and relationship of the Chinese companies with the suppliers and local authorities will make the regulation dealing and manufacturing operations conflicts much more easily handling. The new technology and the modern management skills will benefit the Chinese companies. Despite the benefits for both sides in joint venture, they are facing more arising problems of the relationship management. The lack of skilled Chinese managers brought the conflicts in the management. The joint venture would fail if Chinese managers ran the company and if the foreign managers managed the company, they would focus only maximize the profits instead of developing the technology or transferred the management knowledge. Different in Culture is one of big issue in joint venture. Trust is another big issue for the management relationship between the joint Venture. With all the big issues above, the joint venture companies need a lot of work to crack these down and building a strong relationship so they can compete with other competitions and the product privacy and counterfeiting that cost them a lot of money. Counterfeiting & Piracy Counterfeit products are products bearing an unauthorised representation of manufacturer's trademark or trade name, for example prescription, clothing, watches and automobile replacement parts. There are potential safety risks which may cause personal injury as well as economic loss, because counterfeit products are often of substandard quality. Counterfeiting is usually by using blurred packaging, incorrect spelling of brand name, and no warranty of guarantee available or unbelievably low price. The categories of the counterfeiter's are manufacturers, importers/distributers and retailers while Product piracy is the illegal use of sign, names, logos (brands) and business names that brand manufacturers use to distinguish their products. Simply it is copying goods from a company gained a good reputation through years of extensive work and huge sums without permission.

Problems of counterfeiting and product piracy in china China is the biggest danger in piracy & counterfeiting around the globe. Almost 36 countries around the world involving in counterfeiting problem but China is at the top of the list in counterfeiting by 384,732 units and even the second country in the list after china doesn't reach half of this big number. So it does clearly can be seen that china is a big danger. It represent the only country has counterfeited units numbers between 100-300 thousands units. . If the piracy rate dropped to 30 percent, economic growth could increase by $400 billion and it would create 1.5 million jobs and generate $64 billion in taxes. Besides that there is several effects of this counterfeiting and piracy: lost profits, damage to Brand Names, impacts on foreign direct investment, Impact on Chinese Innovation, Companies developing software, entertainment, intellectual property, or with name-brand recognition all stand to lose from piracy. E.g. Microsoft, Apple, Adobe System, Sony Pictures, Sony. Causes of Counterfeiting in China Back in 1949, China has formed into a socialist economic system, property belongs to people and the states, rather than private owners, people general believe stealing an object that is owned by someone else is less corrupt than owning it outright yourself. During the 19th and 20th century, Chinese gradually adapt a selfstrengthening world view, even the government believes its right to freely reproduce or to tolerate the unauthorized reproduction of foreign works that would help strengthen the country The laws and the regulations allow the existence of illegal counterfeiting and some have provided a platform for such activities. Civilians would adjust their views and demands to accommodate other peoples needs and desires, to avoid confrontation and conflict, and to preserve harmony. The Chinese considered laws only as the last resort. Media restriction / Controlled -Censorship and Information Control Policy -A law that is been denounced -Piracy is needed or even necessary Anti-counterfeiting measures by western companies Countries can do three things in the legal realm to combat counterfeiting: have an effective trademark registration system; criminalize all manufacturing and commercial distribution of counterfeits; and have effective civil procedures, including the availability and enforcement of injunctions and shifting of the burden of proof when necessary. Key references: Franko, Lawrence G. (i.e.1972) Joint venture survival in multinational corporations New York ; London OECD. 2000. Main determinants and impacts of foreign direct investment on Chinas economy. Retrieved 3rd March from http://www.oecd.org/dataoecd/57/23/1922648.pdf Saporito, B., Shultz, C. (1996). Protecting intellectual property: Strategies and recommendations to deter counterfeiting and brand piracy in global markets. The Columbia Journal of World Business, 31 (1), Pages 18-28. Yu. P. (2007) case of counterfeiting and piracy in China, issue of Guanxi: the China letter, volume 1 Zhang Lihong and Keith Goffin. 1998. JOINT VENTURE MANUFACTURING IN CHINA-KEY OPPORTUNITIES FOR OPERATIONS MANAGEMENT RESEARCH. Retrieved 10th March 2010 from https://dspace.lib.cranfield.ac.uk/bitstream/1826/512/2/SWP0198.pdf