And a WFOE can be a mix of the above 2 or 3 types.
Typically global household names choose to be a mixture of them for a multitude of reasons and seeing China is a country with a population making up nearly 20% of the world It’s definitely the place they can’t miss to expand their business to.
The name of Daimler Group might sound new for you. But you must have heard the famous brand Mercedes-Benz.
And Mercedes-Benz belongs to the Daimler Group.
Daimler has developed its business as a WFOE in China for almost 20 years. Since the establishment of Daimler Greater China Ltd. in the year 2001.
Most recently, a report by Reuters revealed that Daimler’s business in China has picked up. After the epidemic situation of COVID-19 within the country.
“In China alone, we sold around 50,000 vehicles again in March. That makes us confident,”, said Markus Schaefer, a managing board member for production (source: reuters.com)
According to the report, Chinese customers have bought 694,200 Mercedes-Benz cars in 2019. With a share of 29% of the total sales.
Moreover, the Daimler Group is likely to invest more in China in the coming years.
Evidence from the strategy of marketing and management reported on Daimler’s official website.
The report says, the group extended Hubertus Troska’s contract until December 31, 2025. In the Board of Management responsible for Greater China.
According to Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG.
Troska has greatly developed and promoted the business of the Group in China. And have created outstanding success especially for the Mercedes-Benz brand in the Chinese market.
Strategically, we want to significantly expand our group-wide footprint in China. China is the world’s largest growth region in the medium term. By far the most important market for Mercedes-Benz Cars and essential for our truck and van business. In addition, we want to further strengthen our local activities in research and development, production and purchasing. (source: daimler.com)
GE (General Electric)
(image source: en.wikipedia.org)
GE’s history in China can date back to 1906. The time when it started doing business in China.
At that time, GE was one of the most active foreign companies in China.
Although GE’s business in China once stopped due to wars and political reason. The Group continued to trade with PRC in 1979. And in the same year, established its office in Beijing.
Today, you can find GE’s operations in China for all of its businesses.
It has 22,000 employees, 7 R&D centres, more than 60 laboratories, over 30 manufacturing bases. In more than 40 cities in the country. In 2015, GE’s revenue in China amounted to $8.1 billion. (source: ge.com)
Despite the severe trade war between the US and China. GE has been struggling to find their way to the huge Chinese market.
The wind energy business for example.
According to GE Reports, the news centre of the group. GE has signed a contract to build a 715 MW in northern China’s Henan Province.
This record deal represents GE’s largest-ever wind order in Asia, as well as the single-largest onshore wind deal ever awarded to a non-Chinese wind turbine generator OEM in China. (source: genewsroom.com)
More WFOEs in China
There are more wholly foreign owned enterprises in China. Like
Also, those from other Asian countries, including
There are many other more WFOEs in China beyond the capacity of the list.
They are still making money in different cities all over China.
Since the free-market policy in 1978, foreign investment has flowed rapidly in the country. and with the latest policy changes, it is even easier and affordable to start your business today.
But why choose a WFOE but not the other forms of enterprises?