Multinational companies may experience culture clashes, incompatibility of Western corporate governance and legal resolution strategy problems. As one of the most successful joint venture models, the high-profile Danone v Wahaha dispute has accelerated into a two-year legal feud across jurisdictions against infringement of the famous Wahaha brand. The case represents a significant watershed, which reflects the status quo of controversy over cooperation and competition in China. Under the current legal framework, Danone's withdrawal serves as a wake-up call for both foreign investors and Chinese companies in the dramatically increasing cross-border merger & acquisitions situation. The seminal case perfectly illustrates unwritten issues about public opinion, nationalism and the rule of law. Danone v Wahaha has also been commonly conceived as a landmark case through the Chinese may judge the fairness of the Western judicial system, while Europeans may regard it as a touchstone for China's investment environment as well as the specific sphere of contracts. It also offers many lessons, including the need for watertight contracts, IP rights, and international arbitration.
Business Law Review