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The Nanjing project can be described in superlatives - the biggest foreign direct investment in China realised by the largest chemical company worldwide. The case study focuses on the internationalisation strategy of BASF AG, in particular with respect to its Asia strategy in 2000. Limited growth opportunities in the saturated European and the meagerly growing North American market encouraged BASF to seek new markets for further expansion. The company identified the fast growing Asian market as a very auspicious region for intensified investment activities. Among other opportunities, China seemed to be the most attractive market. Although BASF was already present in the Chinese market through various subsidiaries and joint ventures, the existing capacities did not suffice to serve an ever growing demand. If the market was not to be given up to Western and Chinese competitors, substantial investments had to be made. One of the cornerstones of BASF''s strategy consisted in the erection of a world-scale integrated petrochemical site in Asia. Negotiations had been going on between BASF and its Chinese partner Sinopec for a 50 percent joint venture. The partnership would result in a US$2.9 billion investment in a production site close to Nanjing. This would make BASF the largest foreign direct investor in China. The BASF managers knew that this decision would be crucial for the future competitiveness of their company. However, negotiations had been time-consuming and there were still sceptics among the BASF management: Was the risk really worth taking? And was not India, with its almost equally large market, its democratic system and better intellectual property enforcement a more promising business environment? The students should put themselves into the position of the decision maker who has to give the final assessment of the project. They have to decide which market is the most attractive and which entry mode is appropriate. Also various risk factors have to be rated and a sound financial investment appraisal is necessary.