China Law Blog

As those who read us regularly know, we are big fans of foreign companies entering China as a Wholly Foreign Owned Entity (WFOE).  We blogged on this initially in "WFOE v. JV" and then again in "To Succeed In China Know The Now."  In "Chinese Company Formation -- Forming a Wholly Foreign Owned Entity (WFOE) in China" and in "Chinese Company Formation, Part II -- WFOE Minimum Capital Requirements" Steve set out the logistics and the requirements for forming a China WFOE. 

The Tri-Valley (California) Herald recently ran a nice story on the Dahlin Group, a small, local, architecture firm that has had considerable success in China.  I love this story for one reason, with four sub-parts.  I love this story because it puts facts to the following four things we are always saying:

1.  China is booming. Go there for growth.

2.  The service sectors in China are particularly hot.

3.  Small businesses, particularly service businesses, can thrive in China.

4.  WFOE is the way in China.

If you are a small service business thinking of expanding to China, I suggest you read this article.  Though I am certainly not saying that the Dahlin Group's entry path and progress in China is the only way to do things there, I am impressed with this company's vision and measured approach to China entry and business. 

I also suggest reading my much longer post entitled, "Doing Everything Right in China -- A Danfoss Primer," describing the steps taken by a medium sized manufacturing company to succeed in China.