2023 INCCS Negotiation Case- The Joint Venture Negotiation [1]

Part A: Shanghai Shendi Group

Part B.: The Walt Disney Company

Background

Part A

Shanghai Shendi (Group) Co., Ltd. is a state-owned company approved by Shanghai Municipal Government and registered on 8 August 2010, responsible for collaborating with The Walt Disney Company on the investment, development and operation of Shanghai Disney Resort through three joint venture companies, and meanwhile undertaking the development of the land, infrastructure facilities as well as other associated industries of Shanghai International Tourism and Resorts Zone.

Part B

The Walt Disney Company, together with its subsidiaries and affiliates, is a leading diversified international entertainment and media enterprise. Disney's first animation screened in China in the 1930s and today our long association continues with offices in Beijing, Shanghai and Guangzhou with over 3000 employees. The company is focused on creating high-quality entertainment experiences and effectively building local and Disney franchises in China. Disney currently has several established businesses in the country, including studio entertainment, parks and resorts, media networks, and consumer products and interactive media. Walt Disney Parks and Resorts are where dreams come true. Walt Disney created a new kind of entertainment families could experience together, immersed in detailed atmospheres and vibrant storytelling. In addition, Walt Disney Parks and Resorts includes the world-class Disney Cruise Line; Disney Vacation Club; Aulani, A Disney Resort and Spa; Adventures by Disney, a guided group vacation experience to some of the world’s most popular destinations; and Walt Disney Imagineering, which creates and designs all Disney parks, resorts, and attractions.

Before the completion of Shanghai Disneyland，there includes a collection of five of the world’s leading family vacation destinations – Disneyland Resort, Anaheim, Calif.; Walt Disney World Resort, Lake Buena Vista, Fla.; Tokyo Disney Resort, Urayasu, Chiba, Japan; Disneyland Paris, Marne-la-Vallée, France; and Hong Kong Disneyland Resort, located on Lantau Island.

Negotiation Process

The Shanghai World Expo was successfully closed on October 31, 2010, In November, Shanghai Shendi Group, representing the Shanghai Municipal Government, met with The Walt Disney Company in Shanghai to officially negotiate the establishment of Shanghai Disneyland.

During this negotiation, the two sides discussed the following important topics:

• Land premium

• Shareholding

• Tax concessions

• Loan and public constructions

• Distribution of profit

• Expansion clause for the existing Disneyland theme park and exiting the deal

•Job guarantees

•Dispute handling

• Other topics

The Negotiating Objectives

Shanghai Shendi Group and The Walt Disney Company successfully set up a new. joint venture for Shanghai Disneyland.