Redwood Group International (RDWD)

[Sloth97]

A WOFE needs to be formed because that is the only way which the Chinese will do business. If the Chinese buy something like high tech medical devices they will not deal with a company that is located in Germany. Therefore, S3I and the subsidiary company set that German company up in China to market the product from there. The products most often are not manufactured in China but assembled in China. The parts are manufactured in Germany and then shipped to China for assembly. That way the products are considered to be made in China and companies will do business with them. Otherwise, China is closed. It's similar to how products here say made in the U.S.A. when in actuality they are made elsewhere and just assembled here. Many people here want to buy only American and people in China want things made in China. They're much more particular in China and will not do business if they have to call another country to get assisstance on some device they bought. They want everything in house there. I don't know if it's a Chinese thing, a communist thing or both.
Also, Lucyinthesky made a good point about exporting which I had not thought of.

This makes the WOFE essential to business.

I'll check in later.

Sloth