Choosing Your China Structure:Representative Offi ces

By Richard hoffmann

The representative offi ce (RO) is the least dynamicof the entities for establishing a foreignpresence in China. The RO can facilitatemarket entry and coordinate sourcing activitiesand marketing, but it is a toothless version of thepossible foreign entities that have little controlover the movement and sale of goods andservices. ROs are the extended arm of overseasparent companies and can only interact withChinese businesses indirectly.