Why do they want to do a joint MBA program? Are they trying to import the technology of how to run such an MBA program? Or is it a cost issue? Obviously, doing much of the teaching within China would reduce costs considerably, most especially living costs for the students (well, for the Chinese students) taking such a program.
I can see the problems as you describe them, can understand the difficulties that might arise, so what is it that is driving the desire to have to overcome such problems?
Is it simply that as a rising nation (or perhaps a rising institution within that nation) the Chinese university simply thinks that it should have an MBA program? But needs help to do so?