What are the differences between a RO and a foreign-invested enterprise (FIE) or wholly-owned foreign enterprise (WFOE)?

The key difference between a RO and an FIE/WFOE is that an RO is not considered to be a legal entity, so it cannot carry out direct revenue earning business activities in China. Another downside is you cannot employ your staff directly, although this can be easily arranged with 3rd authorised agencies.