against Danone. Zong occasionally used expressions like "unequal treaties", which are a throwback to the colonial era. However, the Chinese press points out that Zong employs offshore tax havens, and that his daughter is a resident in the United States. The restrictions contained in contracts and regulations considerably cramped the entrepreneurial style of Zong, who complained of limits the control structure placed on him. "Most of the decisions had to be approved by Danone board members at board meetings once every quarter. How you want me to run the business under such conditions?" The greater maturity in the company has made Zong feel he needs his foreign partner less. Marketing strategy/investment issues The differing marketing choices of the groups contributed to the conflict. Zong is resentful that Danone was happy just to sit back and collect money, and wanted to stop him from investing: "Whenever we wanted to expand the business, they said no. They refused to invest more. But they let us spend the money and then when the ventures made money they wanted in," he says. Outside the joint venture structure were "a batch of companies which served the old impoverished areas of the west, and in the Three Gorges area. Danone had no desire to be there, but they turned out profitable". Future Cola was another example: Zong decided to proceed with the launch of a cola in 1998, against the express wishes of Danone. It was tolerated because Qin Peng defended the contribution it made to the joint venture's profits. Conflicts of interest Zong now controls a significant number of companies which make and sell products competing with the joint venture in its markets. Amongst others, Zong controls Hangzhou Xiushan Shunfa Packaging Co. which makes WHH branded products, and WHHFBSC, which is a parallel distribution company. Interpreting a clause in the JV agreement that the foreign partner must endeavour not to act in detriment to the interests of the JV, Zong is upset that Danone acquired sizeable stakes in many of its competitors, namely China Huiyuan Juice Group, Shenzhen Health Food, Bright Dairy & Food., and a 49% joint venture with Mengniu. WHH principally objects to Danone's role as owner since 2001 of its largest competitor, Guangdong Robust Group (乐百氏(广东)饮用水有限公司), which is a 92% owned subsidiary, and Shanghai Aquarius Drinking Water Ltd (上海正广和饮用水有限责任公司), in which it holds 50%. Zong protested to Danone in the year following