China Foreign Direct Investment: Greenfield, Mergers & Acquisition, Or Joint-Venture

Abstract

Foreign investment in China is once again beginning to grow as the economy sees signs of recovery. Companies looking to establish a presence in mainland China, have three options to evaluate and choose between 1) entering into a joint-venture, 2) acquiring an existing company, or3) developing an organization via Green Field development. This paper delves deeper into these three options, outlining the benefits and pitfalls of each approach. The purpose is to provide the reader with a general overview of investment vehicles available in China and to guide the business professional in a course of action, including the social impact of these options.