hézī qǐyè: 合资企业 - Joint Venture, JV

• Keywords: hézī qǐyè, 合资企业, hezi qiye, Chinese joint venture, JV in China, Sino-foreign joint venture, doing business in China, WFOE vs JV, China business structure, foreign investment in China.
• Summary: Discover the meaning of 合资企业 (hézī qǐyè), the Chinese term for a “joint venture” or “JV.” This page provides a deep dive into what a hézī qǐyè is, exploring its crucial role in China's economic opening. Learn the character breakdown, cultural significance, and practical usage for anyone interested in doing business in China. We compare it to a Wholly Foreign-Owned Enterprise (WFOE) and provide numerous example sentences to show you how this important business term is used in real-world contexts.

• Pinyin (with tone marks): hézī qǐyè
• Part of Speech: Noun
• HSK Level: HSK 6 / Business Chinese
• Concise Definition: A business entity created through a partnership and shared investment between a foreign company and a domestic Chinese company.
• In a Nutshell: Think of a 合资企业 (hézī qǐyè) as a formal business marriage. It's when a foreign company and a local Chinese company decide to pool their resources—money, technology, and local know-how—to create a new, legally distinct company in China. For decades, this was the primary, and often only, way for international firms to enter the Chinese market, making it a cornerstone of modern Chinese economic history.

• 合 (hé): To join, combine, or unite. The character can be seen as a lid (亼) fitting perfectly onto a container (口), symbolizing agreement and coming together.
• 资 (zī): Refers to capital, money, or resources. It's the “investment” part of the venture.
• 企 (qǐ): Enterprise or company. The character depicts a person (人) standing on their tiptoes (止), suggesting the act of looking ahead with ambition and foresight—the spirit of an enterprise.
• 业 (yè): Business, industry, or trade.

The characters literally combine to mean “join-capital enterprise-business” (合资-企业). This is a very direct and logical construction, describing exactly what the entity is: a business formed by combining capital.

The 合资企业 (hézī qǐyè) is more than just a legal structure; it's a symbol of China's “Reform and Opening Up” (改革开放, gǎigé kāifàng) policy that began in the late 1970s. For a long time, the Chinese government mandated the JV model in key industries like automotive, telecommunications, and finance. The goal was a strategic trade: foreign companies gained access to the vast Chinese market and labor force, while the Chinese side gained critical foreign capital, technology, and modern management practices. This policy rapidly modernized China's industrial base. Comparison with a Western “Joint Venture”: In the West, a joint venture is a strategic choice among many. In China, for decades, it was often a necessity. This distinction is crucial. A Western JV might be formed for a single project, but a Chinese 合资企业 often involved building factories, transferring core technology, and navigating deep-seated bureaucratic and social networks. This required the foreign partner to rely heavily on the Chinese partner's 关系 (guānxi)—their network of relationships—to get anything done. The success of a 合资企业 often depended less on the legal contract and more on the strength and harmony of the relationship between the partners.

While historically dominant, the 合资企业 model is now one of several options for foreign investors. China has progressively liberalized its markets, and many international companies now prefer to establish a 外商独资企业 (wàishāng dúzī qǐyè), or Wholly Foreign-Owned Enterprise (WFOE), which gives them 100% control. However, the 合资企业 model is still relevant and sometimes required in certain strategic or restricted sectors. It's also a practical choice when a foreign company genuinely needs a local partner's distribution channels, market knowledge, or government relationships to succeed. In conversation and business news, 合资企业 is a formal, neutral term. It is often shortened to 合资 (hézī) in context, e.g., “我们是合资的” (Wǒmen shì hézī de) - “We are a joint venture.”

• Example 1:
  • 这家公司是一家中美合资企业。
  • Pinyin: Zhè jiā gōngsī shì yì jiā Zhōng-Měi hézī qǐyè.
  • English: This company is a Sino-American joint venture.
  • Analysis: A very common and standard way to describe a company's structure. “中美” (Zhōng-Měi) specifies the nationalities of the partners.
• Example 2:
  • 他们计划在上海成立一个新的合资企业。
  • Pinyin: Tāmen jìhuà zài Shànghǎi chénglì yí ge xīn de hézī qǐyè.
  • English: They plan to establish a new joint venture in Shanghai.
  • Analysis: 成立 (chénglì) is the standard verb for “to establish” or “to found” a company.
• Example 3:
  • 作为一个合资企业，最大的挑战是文化差异。
  • Pinyin: Zuòwéi yí ge hézī qǐyè, zuì dà de tiǎozhàn shì wénhuà chāyì.
  • English: As a joint venture, the biggest challenge is the cultural difference.
  • Analysis: This sentence highlights a common real-world problem faced by JVs.
• Example 4:
  • 我们正在寻找一个可靠的本地伙伴来组建合资企业。
  • Pinyin: Wǒmen zhèngzài xúnzhǎo yí ge kěkào de běndì huǒbàn lái zǔjiàn hézī qǐyè.
  • English: We are looking for a reliable local partner to form a joint venture.
  • Analysis: 组建 (zǔjiàn), meaning “to form” or “to put together,” is another common verb used with this term.
• Example 5:
  • 许多早期的汽车品牌都是合资企业，比如上海大众和北京吉普。
  • Pinyin: Xǔduō zǎoqī de qìchē pǐnpái dōu shì hézī qǐyè, bǐrú Shànghǎi Dàzhòng hé Běijīng Jípǔ.
  • English: Many early car brands were joint ventures, for example, Shanghai Volkswagen and Beijing Jeep.
  • Analysis: This gives historical context, showing the term's importance in specific industries.
• Example 6:
  • 合资企业的利润将由双方按投资比例分配。
  • Pinyin: Hézī qǐyè de lìrùn jiāng yóu shuāngfāng àn tóuzī bǐlì fēnpèi.
  • English: The profits of the joint venture will be distributed by both parties according to their investment ratio.
  • Analysis: A sentence you might find in a legal or business contract, demonstrating its formal usage.
• Example 7:
  • 与成立合资企业相比，我们更倾向于独资。
  • Pinyin: Yǔ chénglì hézī qǐyè xiāngbǐ, wǒmen gèng qīngxiàng yú dúzī.
  • English: Compared to establishing a joint venture, we prefer to have a wholly-owned enterprise.
  • Analysis: This shows the common business dilemma of choosing between a JV and a WFOE (独资, dúzī).
• Example 8:
  • 由于管理上的分歧，那个合资企业最终失败了。
  • Pinyin: Yóuyú guǎnlǐ shàng de fēnqí, nà ge hézī qǐyè zuìzhōng shībài le.
  • English: Due to management disagreements, that joint venture ultimately failed.
  • Analysis: Points to the potential downsides and complexities of running a JV.
• Example 9:
  • 新合资企业的董事会将由七名成员组成。
  • Pinyin: Xīn hézī qǐyè de dǒngshìhuì jiāng yóu qī míng chéngyuán zǔchéng.
  • English: The board of directors of the new joint venture will be composed of seven members.
  • Analysis: Uses related business vocabulary like 董事会 (dǒngshìhuì), board of directors.
• Example 10:
  • 根据中国法律，在某些行业，外商投资必须以合资企业的形式进行。
  • Pinyin: Gēnjù Zhōngguó fǎlǜ, zài mǒuxiē hángyè, wàishāng tóuzī bìxū yǐ hézī qǐyè de xíngshì jìnxíng.
  • English: According to Chinese law, in certain industries, foreign investment must be in the form of a joint venture.
  • Analysis: Explains the legal and regulatory context where a JV is not a choice, but a requirement.

• JV vs. General Cooperation: A common mistake for learners is to confuse 合资企业 (hézī qǐyè) with the general term for cooperation, 合作 (hézuò).
  • 合作 (hézuò) means “to cooperate” or “collaboration.” You can collaborate on a project without forming a new legal company.
  • 合资企业 (hézī qǐyè) is a specific, legally registered company born from that cooperation and investment.
  • Incorrect: 我们合作一个合资企业。(Wǒmen hézuò yíge hézī qǐyè.) - This is redundant.
  • Correct: 我们成立一个合资企业。(Wǒmen chénglì yíge hézī qǐyè.) - We establish a joint venture.
  • Correct: 我们合作开展一个项目。(Wǒmen hézuò kāizhǎn yíge xiàngmù.) - We cooperate to launch a project.
• “Joint Enterprise” is not a standard English term. While a literal translation, the correct and universally understood English equivalent is “joint venture” or its abbreviation, “JV.”

• 外商独资企业 (wàishāng dúzī qǐyè) - Wholly Foreign-Owned Enterprise (WFOE). The main alternative to a JV, offering 100% foreign control.
• 国企 (guóqǐ) - State-Owned Enterprise (SOE). A common type of Chinese partner for foreign companies in a JV, especially in strategic sectors.
• 外企 (wàiqǐ) - A general umbrella term for any “foreign enterprise,” which includes both JVs and WFOEs.
• 股东 (gǔdōng) - Shareholder. The foreign and Chinese partners in a JV are its shareholders.
• 董事会 (dǒngshìhuì) - Board of Directors. The governing body of a JV where both partners are represented.
• 技术转让 (jìshù zhuǎnràng) - Technology Transfer. A key incentive for the Chinese partner to enter into a JV.
• 改革开放 (gǎigé kāifàng) - Reform and Opening Up. The historical policy era that spurred the creation of JVs in China.
• 中外合资经营企业 (zhōng-wài hézī jīngyíng qǐyè) - The full, formal legal name for a “Sino-Foreign Equity Joint Venture.” You will see this in legal documents.