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A joint venture is a type of business relationship consisting of at least two parts, and each party to the business relationship will have some rights with respect to business decisions, and each party will share both risk and business costs. Many commentators have predicted that the hotel industry in china has huge potential to grow in the future, and this will attract many foreign investors to the Chinese market. Joint venture structures are very popular way for foreign investors doing business in China, although it can be seen as a double edged-sword. Usually, domestic and foreign operators are the two participants in joint ventures in China. Consequently, these joint venture arrangements will cause various impacts for the corporate participants. The impact of joint ventures between domestic and foreign operators in the international hotel industry in China can be divided into two categories: favourable and unfavourable. In order to understand these issues, it is necessary to have a basic understanding of the impacts of joint ventures between domestic and foreign operators in the international hotel industry in China. In this way we can analyse and evaluate the contribution of joint venture structures within the industry. The theoretical framework in this paper builds the basis for the primary research, which aims to identify the impacts of joint ventures between domestic and foreign operators in the international hotel industry in china. To achieve a holistic understanding of the research question, both domestic and foreign operators' perspectives have been analysed. In-depth interviews with service providers and a customer questionnaire survey served as data collection tools. Research undertaken appears to indicate that both categories of joint venture partners, domestic and foreign, generally are of the view that the positive attributes of joint venture structures have helped them in achieving their objectives in the Chinese market. Accordingly, it is submitted that joint venture structures are a strong basis on which to conduct business in China. The paper concludes that joint ventures have some unfavourable impacts for both categories of business partners. It was further concluded that both categories business partners are forced on reducing these unfavourable impacts, and to increase the successful aspects of joint ventures in the China international hotel industry. Additionally, there is general consensus that joint ventures facilitate doing business in China. In conclusion, joint ventures are a vital partnership for domestic and foreign operators in the international hotel industry in china.
