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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 d
by 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.