Pardon my ignorance, it surprise me there's even a term WFOE  specialized for this. lol<p>&#62; the net is that most of the value created stays in China. This is the nature of the game. The real or de-facto operating entity, is almost always Chinese.<p>This is true. It will take some time for the Chinese to realize market is not always a zero-sum game. I blame <i>the Communist</i> education, sub-consciously everyone think capital is dirty and tries to grab their share as much as they can to feel secure. Voices inside the country are always fear of US invading China, this is laughable but it is true. So in business 'foreigners' are often excluded precautiously.<p>However it's important to realize that nationalism &#38; patriotism is <i>non-reversible</i> for China. It's necessary to <i>act</i> like your business in China is doing good for China.