her understand or work with. He felt that he would never be able to find a location in the city and government approval was required on everything. Wang was also concerned whether Chinese workers would be able to meet KFC's demands for cleanliness, quality and service. The establishment of a joint venture was considered essential because Wang described the chinese, "completely impossible for us to understand. In fact, trying to do so is a complete waste of time." Trying to understand investment regulations, winning approval for operating licenses, leases, and employment contracts could certainly prevent them from proceeding. A local partner was not required under Chinese law, however Wang felt it would be beneficial in setting up operations and maintaining continued viability. Through ties R.J. Reynolds had with the Ministry of Light, a partnership was formed between KFC and the Beijing Corporation of Animal Production, a Beijing city government-controlled producer of chickens. After careful inspection KFC found that this would indeed work out, as Animal Production already produced three of the approved breeds of chicken required for operations. Negotiations with the poultry producer commenced with Mr. Jue Xia, a senior manager in the Beijing corporation. Xia felt that it would not be able to meet KFC's large demand because they did not have access to large enough reserves of grain. Xia was also hesitant about KFC's quality standards. However, they thought that a partnership with a Western firm would be beneficial for them as they would gain international experience. Xia felt that Tony Wang was unlike most American managers; he was a man he could deal with. The Beijing Corporation helped Wang find a chicken supplier but they lacked close contact with the government agencies that would be essential to setting up operations. So a third partner was needed. Both partners agreed that the Beijing Tourist Bureau would be able to meet th...
