Foreign-invested Joint Ventures: A Comparative Study between China and Thailand
ABSTRACT. Both local and foreign businesses in many parts of the world, including China and Thailand, often seek to enter into foreign-invested joint ventures as a means of accomplishing their business goals. This article compares two Chinese laws on foreign-invested joint ventures, including Law on Sino-Foreign Cooperative Joint Ventures and Law on Sino-Foreign Equity Joint Ventures, with Thai counterparts. It found that the legal flow of foreigners deciding to set up joint ventures in China is that they decide between the equity joint venture and cooperative joint venture, and then they found and manage their joint ventures according to their selection. In contrast, the legal flow of foreigners deciding to set up joint ventures in Thailand is that they need to make a joint venture contract under the Civil and Commercial Code of Thailand and pay more attention to the Foreign Business Laws of Thailand in which it will affect the ownership and control power of foreign parties in the joint venture contract.
AUTHOR. Sarun Pimgam
I am deeply grateful to Li Yihao for his help, advice, and recommendation in many parts of this article.