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What is the China foreign investment enterprise ?
FIEs tend to have tight government regulation at nearly every important business juncture, which limits the efficiency at which any foreign company can profit from foreign ventures as well as the amount of control that a foreign parent has over the FIE. In China, any one of a number of legal entities can be considered FIEs including equity joint ventures (EJV), cooperative joint ventures (CJV), wholly-owned foreign enterprises (WFOE) and foreign-invested companies limited by shares (FCLS).
Corporate forms of foreign invested enterprises---China foreign investment enterprise
An FIE established in the PRC will, in most cases, be regarded as a PRC legal person.
There are five main types of FIE which may be established in the PRC:
• Wholly foreign-owned enterprises (WFOE)
• Sino-foreign joint ventures which can either be equity joint ventures (EJV) or cooperative
joint ventures (CJV)
• Foreign-invested companies limited by shares (FICLS)
• Foreign-invested partnerships
• The vast majority of foreign investors establish either a WFOE (a wholly-owned subsidiary)
or an EJV.
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