well , under this arrangement two parties cooperate to manufacture a product or a category of products , for example , machine tools for export . each party produces and supplies a part of the components and parts ; one party is a chinese enterprise , the other , an overseas firm . most probably , the foreign counterpart contributes technology and equipment , and sometimes , parts and components , while the chinese enterprises factory building , labor and other resources to the cooperative production . they join hands and fulfill orders together by an agreement or a contract .