Can the parent company bear the debts of its subsidiaries?

Legal analysis: No, according to the law, a company can set up subsidiaries, which have legal personality and independently bear civil liability according to law. Therefore, legally speaking, the parent company has no obligation to pay the debts of its subsidiaries.

Legal basis: People's Republic of China (PRC) Company Law.

Article 1 This Law is formulated for the purpose of regulating the organization and behavior of companies, protecting the legitimate rights and interests of companies, shareholders and creditors, maintaining social and economic order and promoting the development of socialist market economy.

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.

Fifteenth companies can invest in other enterprises; However, unless otherwise provided by law, investors shall not be jointly and severally liable for the debts of the invested enterprises.