In fact, before 1986, joint ventures were the only way for China to attract foreign direct investment. In the development process of more than 20 years, Sino-foreign joint ventures have indeed reflected their own advantages and characteristics. For foreign investors, joint ventures reduce or avoid political risks and investment risks, and can enjoy preferential treatment, especially preferential tax rates. Foreign investors can learn about China's political, social, economic, cultural and other situations through local joint venturers. It is beneficial to increase business and management knowledge, improve business reputation, and also facilitate the acquisition of financial credit, financing, material supply, product sales, etc. through local channels.