With China's rise as a new economic power, the economic and political relationship between Australia and China comes into a new area of development. China's need for capital, raw materials, high technology, and modern management skills has opened a range of opportunities for Australian industry and commerce. However, before making a substantial investment, an Australian investor needs to decide on which business structure is the most suitable for making the investment, a business alliance or a subsidiary. What are the advantages and disadvantages of the different business vehicles? Can the products of the new business be sold in the Chinese domestic market? Can invested capital be repatriated back to Australia? What are the tax implications in both China and Australia of setting up the new business? If a business alliance is established, how does the investor retain control over the new business entity? Does China have a sound political and legal environment which ensures the rights of a foreign investor and provides economic and legal certainty for the foreign investment activities?This book provides the first comprehensive analysis of the above issues. While giving general treatments to all possible investment vehicles, as well as legal and cultural background of China, it focuses the study on the problems facing the establishment of joint ventures between Australian investors and Chinese participants in China. The book will make an excellent contribution to the mutual understanding between Australian and Chinese business people.