In fact, before 1986, joint ventures were the only way to attract foreign direct investment in China. Sino-foreign joint ventures have indeed embodied their own advantages and characteristics in the course of more than 20 years of development. For foreign investors, the joint venture reduces or avoids political risks and investment risks, and can enjoy preferential treatment, especially preferential tax rates, foreigners can learn about China's political, social, economic and cultural conditions through local joint ventures, which is conducive to the growth of commercial and business knowledge and improve business reputation, and also through local channels, access to financial credits, capital financing, supply of materials, product sales and other convenience. It is also possible to obtain financial credit, capital financing, material supply, product sales, etc. through local channels.