The subsidiary is a legal person organization established by the head office, which has legal personality and independently bears civil liability according to law. The first-level subsidiaries generally belong to the provincial level, and the second-level subsidiaries are generally prefecture-level subsidiaries.
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.