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Cao Chaoyang said that there are currently a few major domestic tire companies that have implemented joint ventures, but quite a few joint ventures are unsuccessful. A number of joint ventures in China have lost their say in the development of enterprises. Some companies do not even exist, let alone brands and markets. As for the original intention of "market-for-technology" held at the time of the joint venture, it proved to be a matter of wishful thinking, and few companies received such returns. This is because it is difficult for a Chinese company that is in a relatively weak position to talk to a strong opponent about a joint venture. It is often difficult to have the initiative and is often conquered by the other party’s investment or technical commitment, and it will work hard to build the brand and spell it out. The market is overwhelming. On the other hand, in previous joint ventures, some government departments tried hard to promote joint ventures in order to attract investment, regardless of whether the joint venture was beneficial to the company.
Cao Chaoyang, taking the joint venture process between Fengshen Tire and Pirelli of Italy as an example, said that the goal of Fengshen Tire is clear, that is, after the joint venture, Fengshen’s “cake†is larger than before. Even if the joint venture company “cake†can be several times or more than a dozen times bigger, if the part obtained by the last Fengshen has not changed or is even small, then what is the significance of our joint venture? This is why Aeolus eventually failed to enter into a joint venture with Pirelli. The reason for the success is not that the outside world is because of the issue of controlling shares. "Because no matter how advanced foreign technology promised by the foreign party is, how much money is invested, and how well-known brands are, it must ultimately be reflected in the size of the returns of Chinese companies," said Cao Chaoyang.
According to report, last year, the joint termination of the joint venture between Double Star and the German mainland, Aeolus and Italian Pirelli was hailed as a sign that China's tire industry has matured into an external joint venture. So far, apart from these two companies, major companies in the industry such as Delta Group, Shanghai Truck Tire, Guizhou Tyre, and Shandong Linglong have not conducted joint ventures.
Concerning the disputes between the Chinese and foreign companies in the tire industry that have been disputed by the industry for many years, Cao Chaoyang, deputy to the National People's Congress and chairman of Fengshen Tire Co., Ltd., in an interview with this reporter made it clear that from the many cases that have been joint ventures at present, tire companies have joint ventures. Not worth the candle. The main reason is that the relative strength of Chinese enterprises is relatively weak, and it is impossible to grasp the initiative in Sino-foreign joint venture negotiations. At the same time, there are too many non-economic factors that affect joint ventures, and it is impossible to ensure that domestic enterprises achieve the goal of maximizing profits in joint ventures.