Dynamic alliance and virtual enterprise (VE) are essential components of global manufacturing. Minimizing risk in partner selection and ensuring the due date of a project are the key problems to overcome in VE, in order to ensure success. In this paper, a risk-based partner selection problem is described and modeled. Based on the concept of ine6cient candidate, the solution space of the problem is reduced e7ectively. By using the characteristics of the problem considered and the knowledge of project scheduling, a rule-based genetic algorithm (R-GA) with embedded project scheduling is developed to solve the problem. The performance of this algorithm is demonstrated by a problem encountered in the construction of a stadium station and the experimental problems of di7erent sizes. The results of this trial demonstrate the real life capability of the algorithm.