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Perspective

Jun. 3, 2010

Stormy Weather Ahead for Foreign Companies in China?

Allan Marson and Fang Fang of Baker McKenzie write about representative offices, a popular means for establishing business presence in China.

By Allan Marson and Fang Fang

Resident representative offices of non-Chinese companies in China are popular for establishing a business presence because they are flexible and low-maintenance compared to a subsidiary in China. The Chinese State Administration for Industry and Commerce indicates that foreign companies had registered 68,000 representative offices by the end of 2009. However, recent changes will increase operation costs and limit the flexibil...

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