Foreign companies are leaving China like it’s going out of style, and for a good reason. With regulatory pressure, rising costs, and geopolitical risks, the landscape has shifted dramatically. This four-part guide walks you through the ins and outs of shutting down or downsizing your Wholly Foreign-Owned Enterprise (WFOE), ensuring you avoid costly missteps along the way.
Key Points
- Foreign companies are exiting China due to increased regulatory scrutiny and rising costs.
- The guide covers strategy, execution, compliance, and protecting assets during an exit.
- Decision-making on whether to fully shut down or downsize strategically is crucial.
- Internal audits are vital before notifying employees or external stakeholders.
- Maintaining clear communication and organisational alignment is essential throughout the process.
Why should I read this?
If you’re tangled up in the complexities of operating in China, this article is an absolute must-read. Whether you’re looking to scale back or pull the plug completely, you’re going to want a game plan that won’t leave you high and dry. This four-part guide is your survival manual to navigate the tricky waters of shutting down your WFOE without losing your shirt.