Interim Management To Resolve Challenges In China Operations

Since the first COVID cases hit the news, China has taken rigorous measures. Travel restrictions and quarantine requirements have restricted foreign business people from visiting their China operations and complicated expat assignments. At the same time, the local market environment has become more challenging, with slowed growth, disruption in the supply chain, and geopolitical uncertainties.

Under these circumstances, we have seen overseas head offices and shareholders face the following issues in their China operations:

• Tension with JV partners. We've observed tensions rise between Chinese and international shareholders. This sometimes results in delays or even blocked new investments. Root causes are, among others, diverging business interests in the JV operation or cultural misunderstandings. As the Chinese and global markets have all suffered from the pandemic, businesses are not performing as well as before, which exacerbates the tension.