A parent company refers to a company that owns more than a certain proportion of shares in another company, or can actually control the operation of another company through an agreement. A subsidiary is a company corresponding to the parent company, and more than a certain proportion of its shares are owned by another company or actually controlled by another company through an agreement.

Article 74 of the Civil Code stipulates:

A legal person may set up branches according to law. Where laws and administrative regulations stipulate that branches should be registered, such provisions shall prevail. Branches engage in civil activities in their own names, and the resulting civil liabilities shall be borne by legal persons; It can also be borne by the property managed by the branch company first. If it is insufficient, it shall be borne by the legal person.