The China Representative Office is an extension of an overseas parent company, and can facilitate market entry, coordinate sourcing and marketing, but offers little control over the movement and sale of goods and services. They are often used to help overseas parent companies gain a sense of the China market.
Download our PDF report to find out more about Representative Offices, including the advantages and disadvantages of operating a RO.
Excerpt From The Report
The representative office is the least dynamic of the entities for establishing a foreign presence in China. The RO can facilitate market entry and coordinate sourcing activities and marketing, but is a toothless version of the possible foreign entities that has little control over the movement and sale of goods and services. They are the extended arm of overseas parent companies and can only interact with Chinese businesses indirectly. However, less tangibly, they can offer a sense of the domestic market and help determine whether China’s 1.3 billion people and its complex business and legal structure are profitably navigable for your company.
