Creation of the local structure in China:

The foreign company who are willing to settle in China must comply with some rules:  A policy of sectional orientation of the investment (Some activities are prohibited to foreigners, whereas others are open for them but only under certain conditions).

Three types of companies can be created in China:

• Representative Office (RO)
  
• The wholly owned foreign company (WOFC)
  
• Joint venture (JV)