This report highlights the importance of cultural differences and conflicts that arise from the cultural differences between two countries. Hofstede cultural dimensions are discussed to explain the cultural diversity aspects and the conflicts that can arise between Australia and China while forming an IJV in China. The report also mentions the negotiated practices for conflict resolution and ways to prepare the expatriate to handle the venture in China. Lastly, some recommendations are provided in order to enhance the skills of the expatriate to increase the productivity of the IJV.