What is the post-joint venture

Recently, we can always hear discussions about the "post-joint venture era." However, there is no consistent statement about what is a post-joint venture. Some people say that the post-joint venture era is a concept of time. Since the establishment of Beijing Jeep in 1983, the joint venture of Chinese autos has passed nearly 30 years. Many companies have signed the 20-year contract for the first round of Sino-foreign joint ventures. The new round of renewal of the joint venture between Chinese and foreign parties marks that The automotive industry entered the post-joint venture era. Some people also say that the post-joint venture period is a manifestation of soft power. After a series of processes such as introduction, digestion, and absorption, the joint R&D strength of joint ventures has gradually increased, and the launch of joint venture self-owned brands marks the arrival of the post-joint venture era. Along with the concept of the post-joint venture era, people's discussion of the share ratio issue has also become the focus. Some people believe that in the post-joint venture era, countries should liberalize the ratio requirements of Chinese and foreign stocks; different opinions believe that China should increase its equity ratio in joint ventures.

In any case, it is generally agreed that the current joint venture should be very different from 30 years ago. I agree with this view, but if you look at the changes in the post-joint venture period only as a change in the number of shares, it's a bit shallow. In my opinion, the following joint ventures should have the following characteristics.

First of all, the joint venture should be more international and have a more open mind and vision. In the past 30 years or so, our joint venture idea has been to exchange technology for the market and focus more on the domestic market. Through joint ventures and cooperation in these years, the joint ventures have made great strides in terms of technology and management experience, and China's auto industry has also increasingly integrated into the international competition. In this case, the post-joint venture era should reflect more of the joint venture's role in the development of the international automotive industry. In other words, when there is a contradiction between the number of shares and the competition for participation in the international division of labor, should we make choices, should we consider going out and try it out? The post-joint venture era actually means that we can be more open and more active. The equity ratio may be a small benefit here. If the original joint venture was to change technology, it may be to go out today. In the post-joint venture era, we must first think about what we want.

Second, the joint venture should be deeper. With the continuous deepening of the joint venture, the Chinese and foreign parties of the joint venture company, especially the Chinese side, should not only consider the interests of the joint venture itself, but also take into account the deeper level of integration between the two parent companies. In this regard, not long ago, the way BAIC and Daimler held each other’s shares was worth learning from. This also to a certain extent jumped out of the entanglement of the equity ratio of the joint venture, so that the parties to the joint venture could consider how to achieve a win-win situation on a wider scale.

At present, the pattern of the international automobile industry has undergone profound changes. On the one hand, due to the influence of the international economic environment, traditional large automobile groups are facing financial and operational pressures, making them eager to find opportunities for open cooperation at all levels; on the other hand, the rapid development of emerging markets including China allows international The traditional big car group is more willing to cooperate with us. The characteristics of this kind of cooperation are different from those of the past, the one-size-one operation method, the breadth and depth, and the more a kind of “packaged” cooperation model. This requires us to learn how to settle accounts when we negotiate in this new joint venture mode. We must calculate a small account and we must learn to calculate large accounts.

In the post-joint venture era, the two joint ventures should focus on closer cooperation and explore the diversity of cooperation in all aspects, maximizing the interests of both parties regardless of the depth or breadth of the joint venture. For both parties, the joint venture is not only a base for product production, but also a support for research and development. It should also be a manifestation of the different roles played in the global market. It has rich connotations and extensions. How to better use this means of joint ventures to better play the role of the joint venture platform, it is worth considering the joint venture parties. The era of post-joint ventures will surely be an era of renewed interest in the game. It may be much more, much more difficult, and even more sensitive than the problems encountered in the initial joint venture. In the face of these problems, both Chinese and foreign parties are faced with the problem of how to position themselves. There are problems and even contradictions are inevitable, but we must not narrow our interests.