Manufacturing Export Goods in China
China is not a free economy. Every business activity is regulated. According to current PRC laws and regulations, any established presence of a foreign company shall be approved and lodged with relevant government authorities. Unregistered business activities may be caught and deemed illegal by Chinese government authorities.
Date:
May 2008
Keywords (click to search): [export] [manufacturing] [goods]
The established presence of a foreign company in China normally takes one of two forms that being either a Wholly Foreign Owned Enterprise (WFOE) or a representative office (Rep Office). A WFOE has a far wider scope of operation than a representative office, which by its very nature is restricted as to what it can do. For example, a WFOE can enter into product purchase agreements with other companies, import and export products without the help of other trading companies, and employ its local employees. A rep office, by contrast, is limited to liaison activities and cannot directly enter into contracts or provide services; a rep office may only employ local Chinese employees through local service companies.
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