In the past, foreign investors in some industries that were not High Technology or export oriented needed to find a Chinese partner and establish a joint venture instead of a Wholly Foreign Owned Enterprise, or WFOE. This set limits to establishing WFOEs in the service sector. In theory, WFOE enterprises in the service sector could not be established, since they did not manufacture goods that could be exported and typically did not use advanced technology. Having said that, exceptions certainly did exist in the past, but now the possibility of setting up a WFOE will definitely be open to more businesses in the service sector. |