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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (41630)3/6/2011 12:41:10 PM
From: E_K_S  Read Replies (1) of 78920
 
Hi Spekulatius -

Do you know if the larger JV's (ie. DuPont and Corning) operate in the same way? Both DuPont and Corning have spent billions with their Chinese JV partners on factories and R&D facilities which I would assume provide some type of ownership rights (at least through the subsidiary operating company).

I do know that the way Chinese handle property rights are much different than in the U.S.. The Chinese government has been know to just take property for their own interest w/o compensation to the previous owner(s) (ie no eminent domain laws).

Perhaps it all comes down to enforcement. If a deal goes sour, the U.S. entity has no real legal recourse as long as the Chinese judges (ie. Gov) trumps all other agreements.

It reminds me of how they do business in Russia.

EKS
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