4 ms·

WFOEs can sell to Chinese businesses, consumers, government (and they can sell overseas, and overseas companies can sell to WFOEs or domestically). There's a l

WFOEs can sell to Chinese businesses, consumers, government (and they can sell overseas, and overseas companies can sell to WFOEs or domestically). There's a lot of circularity in your comment. A company can be wholly foreign owned. A foreign owned company can sell in China, it can declare tax and issue receipts, employ people, rent office or factory space, build a building, the whole hog. I'm not sure where what niche you are in regarding import/export taxes, opening factories, and employing cheap labour all in one gulp of air. Wholly foreign owned companies in China are legal entities and have been for a long time, your comment "foreigners cannot own the majority of ANY company" is factually wrong and is FUD. Do you have an agenda with these comments? Please don't make HN political.

hangonhn 7y ago
My comment wasn't as precise/nuanced as it should have been but was meant as an add-on of the parent's comment. What I meant is that the ownership restriction doesn't just apply to car companies but other industries as well -- although I do see now how that could have been read differently. WFOE cannot sell directly to Chinese consumers. The way WFOE sell to the Chinese domestic is essentially by "exporting" and "importing" its own products again, thus subject to taxes on such activities ( https://www.set-up-company.com/joint-venture-vs.-wfoe:-which-is-a-better-option-for-establishing-a-business-in-china.html https://www.set-up-company.com/joint-venture-vs.-wfoe:-which... -- "Scope of Business" Wish I could find a better source on this). A friend of mine interned at one of these firms that basically specializes in these creative "re-import" businesses but I don't know what these firms are called. Not sure why my comments generates such a reaction from you that you accuse me of FUD or being political. It's certainly not intended as such. I study Chinese history as a hobby, especially modern history. I have friends and family who do business in China (and own businesses in China). My comments were intended to add more information and background to the original comment by combining what I've read and what I've heard. But sometimes intentions and outcomes don't match up. Apologies if my comments injected too much of my own perspective on the subject.
- zhte415 7y ago
  > WFOE cannot sell directly to Chinese consumers. Well, I can open up a sandwich shop. A foreign owned entity will indeed probably get scrutiny. A couple of friends have shops selling sandwiches (one toasted, one pizza type). They are WFOEs! I don't sell sandwiches. I mainly work in tech, finance and HR (generalist, I suppose). Some industries are controlled, even in another reply someone mentioned Tesla's plant is 100% owned. If waving fans, I have been in China (mainland) for two decades. What you type about ownership rules is utterly incorrect. You don't seem able to drop the ball. Edit: I'm going to drop the ball here and discontinue this. I wish you a good day.

hangonhn 7y ago

My comment wasn't as precise/nuanced as it should have been but was meant as an add-on of the parent's comment. What I meant is that the ownership restriction doesn't just apply to car companies but other industries as well -- although I do see now how that could have been read differently. WFOE cannot sell directly to Chinese consumers. The way WFOE sell to the Chinese domestic is essentially by "exporting" and "importing" its own products again, thus subject to taxes on such activities ( https://www.set-up-company.com/joint-venture-vs.-wfoe:-which-is-a-better-option-for-establishing-a-business-in-china.html https://www.set-up-company.com/joint-venture-vs.-wfoe:-which... -- "Scope of Business" Wish I could find a better source on this). A friend of mine interned at one of these firms that basically specializes in these creative "re-import" businesses but I don't know what these firms are called. Not sure why my comments generates such a reaction from you that you accuse me of FUD or being political. It's certainly not intended as such. I study Chinese history as a hobby, especially modern history. I have friends and family who do business in China (and own businesses in China). My comments were intended to add more information and background to the original comment by combining what I've read and what I've heard. But sometimes intentions and outcomes don't match up. Apologies if my comments injected too much of my own perspective on the subject.

zhte415 7y ago
> WFOE cannot sell directly to Chinese consumers. Well, I can open up a sandwich shop. A foreign owned entity will indeed probably get scrutiny. A couple of friends have shops selling sandwiches (one toasted, one pizza type). They are WFOEs! I don't sell sandwiches. I mainly work in tech, finance and HR (generalist, I suppose). Some industries are controlled, even in another reply someone mentioned Tesla's plant is 100% owned. If waving fans, I have been in China (mainland) for two decades. What you type about ownership rules is utterly incorrect. You don't seem able to drop the ball. Edit: I'm going to drop the ball here and discontinue this. I wish you a good day.