According to China's highest court, Chinese courts concluded more than 26,000 foreign-related civil and commercial cases in 2024, representing a 6.1% year-on-year increase.
Incorporating a Chinese subsidiary (often referred to as a wholly foreign-owned enterprise, WFOE) is the most common way for a foreign company to establish a presence on the Chinese mainland. A WFOE is a separate legal entity that can enter into its own contracts and have its own employees, and is the equivalent to limited liability company such as a B.V. in the Netherlands or a GmbH in Germany.
