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Wholly Foreign-Owned Enterprise

Meaning

A Wholly Foreign-Owned Enterprise, or WFOE, is a common investment vehicle in China that represents a limited liability company established and wholly owned by foreign investors, without the involvement of a Chinese domestic partner. This structure provides the foreign entity with greater control over its operations, management, and intellectual property within the Chinese market. In the health and wellness sector, this structure is often used by international companies to directly establish clinics, research facilities, or product distribution channels.