A subsidiary can be changed into a branch, and a wholly-owned subsidiary can be changed into a branch. Generally, it can be handled by absorption and merger. If it is not a wholly-owned subsidiary, it should first acquire a minority stake to become a wholly-owned subsidiary, and then become a subsidiary through merger.
Legal objectivity:
Article 14 of the Company Law of People's Republic of China (PRC) * * A company may set up branches. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.