A wholly foreign owned enterprise, also known as a WFOE or WOFE, is a limited liability Chinese company which is invested into with 100% foreign capital and owned by only expats.

This company behaves in the same way as any other Chinese company. It can trade freely in China, make revenue in CNY, invoice in CNY, can transfer profits back abroad, and can import and export goods.

Typically a WFOE will be a subsidiary of a foreign company which is based abroad, but although a Chinese representative of this foreign company, it still operates as a standalone entity within China.