Question

If I want to invest a leading entertainment, artists and performance brokerage agency in China by using a joint venture, what types of investment barriers will I face when i enter into the China market?

Answer 1

A Thumbs Up! Would be really helpful for me. If you have any questions, please leave a comment and I will get back to you as soon as possible.

In this case, if you want to invest in a leading entertainment and artist agency in China by using a joint venture, the type of investment barrier that you have to majorly face is high risk of capital investment.

In a joint venture, it's quite obvious that both companies will have to invest capital, and as everybody knows entertainment and artist agencies carry a lot of competition nowadays that automatically leads to a higher risk of investing capital.

Barriers to market access is also one of the existing barriers in China with the form of pre-establishment and post-establishment restrictions. Pre-establishment restrictions come in the form of various government policies in different dimensions and post-establishment restrictions that are followed in the field of entertainment and artist agency.

Unfair competition is another investment barrier in China for joint ventures because even after an investment of capital highly then will be competition to fight against in China with internal or external unfair competition in terms of experience, market share, and customers.