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The WTO and entry modes in China
Author(s) -
Teng BingSheng
Publication year - 2004
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.20015
Subject(s) - subsidiary , multinational corporation , china , accession , business , international trade , industrial organization , mode (computer interface) , finance , european union , political science , law , computer science , operating system
For years, multinational enterprises (MNEs) vying for the Chinese market used joint ventures (JVs) as an entry mode. However, there has been a growing frustration with the JV mode. It is reported that MNEs are increasingly opting for wholly owned subsidiaries for better control. This article examines the recent development of the business environment in China. It concludes that there are now real entry options for MNEs, including exporting, JVs, wholly owned subsidiaries, and acquisitions. China's accession into the World Trade Organization (WTO) will accelerate the change process and make non‐JV options even more viable. A few decision rules for choosing an entry mode in China are discussed. © 2004 Wiley Periodicals, Inc.