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Re-think on Foreign JVs in China

September 18, 2008: 01:48 PM EST

China’s melamine scare is making the industry realize that food safety measures and precautions in foreign joint ventures have to be as thorough as in Europe. If an investment stake is too small, there might not be enough leverage to take action. In China, a joint venture is a legal entity, and has to operate under Chinese rules. International companies need to think very carefully about whether they trust the local structures. Danone ran into problems with Wahahah while Remy Martin, Fosters and Peugeot all regretted their joint ventures.
"Choose Your Joint Venture Partner with Care", FoodNavigator, September 18, 2008, © Decision News Media
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