The RO is one of the most inexpensive and useful business vehicles through which foreign companies can establish their first China presence. It has been traditionally used as a first step to gaining a foothold in China. Its popularity is due to the relative simplicity and short time frame required to set up such an office. Compared to alternative market entry vehicles an RO is a low-risk venture as it allows a certain level of control over the company’s China business activities through the employment of foreign staff and is often chosen by most Western companies as a way to advertise before expanding their commercial operations in China. Another major advantage of setting up an RO is that, for it to be operational, ...
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