Many American companies enter China through joint ventures w

Many American companies enter China through joint ventures with local firms but China is succeeding in the United States primarily with a strategy of buying companies out right. What are some of the factors that might account for this difference?

Solution

China\'s strategy of buying companies outright virtually has no downside risk involved. By doing this they are able to get overall control on the specialized competencies, comparatively stable and sophisticated market outlets that help in honing its products and services and a very stable & flexible supply sources. More over it gives them a platform to negotiate several other deals at ease.