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June 12, 2007
Danone Sues Wahaha -- Accuses Partner of Parallel Operations
Danone is now sadly forced to wash its dirty linen in public:
"After a long investigation, Danone officials concluded that their closest partner in China, Wahaha’s longtime chairman, Zong Qinghou, was operating a series of secret companies outside the joint venture — companies that were mimicking the joint venture and siphoning off millions of dollars."
This has happened numerous times in the past -- the most famous case being the American paper company which set up a joint venture factory in the early 1990s, only to find that its partner had set up a factory across the street in competition with it, making use of the machinery, workers and expertise the American company injected into the venture.
Who says history doesn't repeat itself?
Comments
So never gonna trust the others too much. That's the rule of the world.
Posted by: chinahelpline ![[TypeKey Profile Page]](http://www.asiabizblog.com/nav-commenters.gif)
at June 18, 2007 1:47 PM
So never gonna trust the others too much. That's the rule of the world.
Posted by: chinahelpline at June 18, 2007 1:47 PM
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