Today, our colleague Tom Shoesmith published his Client Alert titled China: Are Joint Ventures the Answer to Trump’s Trade Wars? In the Alert, Tom discusses how U.S. companies may respond to the Trump Administration’s tariff wars. This could including entering into a joint venture (JV) with a Chinese partner, enable the U.S. company to respond nimbly to changes in the global trade environment. However, Tom notes that JVs in China are subject to structural requirements and a regulatory regime unlike those found in Western countries and encourages U.S. companies to consider whether the JV should be organized in a non-People’s Republic of China (PRC) jurisdiction.
Are JVs the Answer to Trade Wars?