Yes O. And B,,, to understand the decision we need to understand the underlying Chinese culture and perspective of the law. It would be a mistake for Wessners to expect the legal notions and concepts that we benefit from in the west to be observed. The state directs the courts.
If I may move off, topic up for a moment, Hernando, De Soto, in his best seller of the mystery of capital, explains why have not nations do not develop--in large part because they do not have access to law. They can live on a stretch of the riverbank for generations, but they cannot have title to the land to enable receiving a mortgage ----they are thereby estoppel from becoming entrepreneurs.They don't need foreign direct investment.--they need simply basic Anglo-Saxon law 100 years ago.They have the assets.
Back to the task at hand---i it is well documented that notwithstanding contracts have been entered into to include joint ventures when push comes to shove family and the state come first and only after they're satisfied will the law be observed.
To kill a mockingbird versus Richard Gere, in red corner, set out to respective cultural positions positions quite nicely. In the Richard Greer, movie the prosecutor and state are one notwithstanding the evidence.
A boat eight years ago a company called Sino forest went bankrupt in a similar fashion, did not maintain records are generally excepted accounting principles committed fraud, etc., and the funds lost. We're not worth talking to the receivers about..
So advice on joint ventures ----- there a number of strategies to strengthen the marriage---one is golden handcuffs the two entities each exchange shares in each other's company in our case provide shares in the head company, and the Chinese company provides this year's shares in poet. Thereby the views, and expectations are somewhat aligned.
Still not sure I would provide such counsel in this case., but certainly when both companies are grounded in Anglo-Saxon law iit is a tactic that might be considered.
Enjoying the reads very much. Thank you. Tpower
