china law
Lehmanlaw

Is a foreign invested enterprise (FIE) treated any differently than a domestic company?

Is a foreign invested enterprise (FIE) treated any differently than a domestic company?

Yes. This is controlled through the use of a catalogue which classifies various industries into: (1) the encouraged, (2) the permitted, (3) the restricted and (4) the prohibited. Currently, a wholly foreign owned enterprise (WFOE) is a restrictive form of corporate structure that covers companies in many industries. More and more investors are opting for a corporate form that appears similar to that in their native country.


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