Both the subsidiary and the parent company are independent legal persons in law, and the parent company generally does not interfere in the daily operation of the subsidiary, but realizes the control of the subsidiary in the form of appointing directors of the subsidiary. Subsidiaries usually participate in various economic activities in their own independent names, and assume responsibilities within the limits of all their assets. The parent company has no obligation to bear the liabilities of its subsidiaries. Shanxi Taihua Information Technology Co., Ltd. is a holding subsidiary of Taiyuan Chemical Industry Group Co., Ltd., but the latter, as the parent company, does not directly interfere with the daily operation of the former, and the former operates independently.