Legal basis: People's Republic of China (PRC) Company Law.
Article 14 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.
People's Republic of China (PRC) labor contract law
Article 34 Where an employing unit is merged or divided, the original labor contract shall remain valid, and the employing unit that inherits its rights and obligations shall continue to perform it.
Article 35 The employer and the employee may change the contents agreed in the labor contract through consultation. Changes to the labor contract shall be made in written form.