What does a wholly-owned subsidiary mean and what responsibility should it bear?

Legal analysis: A wholly-owned subsidiary refers to a company with only one corporate shareholders, which is wholly owned or controlled by the only parent company.

Legal basis: Article 3 of People's Republic of China (PRC) Company Law is an enterprise legal person with independent legal person property and legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.