"The review pointed out that if you have a situation where 90% of your population is doing something, then it's not really a very good law, " said Simon Levine, head of the intellectual property and technology group at DLA Piper.
As compared to a Sino-Foreign Joint Venture, a WFOE enables a company to implement its worldwide strategies without having to consider the wishes of a Chinese partner, and with only direct employees involved, a WFOE makes it easier for a company to protect its intellectual property and technology.