Partnering with SOEs – a new path for growth?
Partnering with SOEs – a new path for growth?
China’s ongoing state-owned enterprise (SOE) reform seems to have entered a new phase, with a push to deepen reform in 2017. Further, Beijing has issued explicit encouragement for private enterprises to participate, giving rise to potential opportunities for multinationals to form joint ventures with SOEs. Despite possible challenges in partnering with SOEs, feasible JV arrangements can still be realized.
This issue of “Our view” looks at joint ventures between private entities and state-owned enterprises (SOEs) in light of China’s push to further SOE reform, along with an explicit encouragement from Beijing for private enterprise participation.
Key points of interest include:
- the scope of SOE reform and how private companies could benefit in terms of joint venturing with SOEs
- key challenges in partnering with SOEs, especially regarding control and valuations
- potential approaches to realizing feasible JV arrangements.
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