Legal analysis: Yes. The parent company is a shareholder of the subsidiary company. Although the subsidiary is an independent legal person, it can engage in various business activities within its own business scope, but its autonomy is limited. The parent company plays a leading role in the shareholders' meeting of the subsidiary, and the management policy and investment plan of the subsidiary are actually decided by the parent company. The parent company owns subsidiaries, except for a few controlled by agreement, which are basically realized through investment. Although the subsidiary is an independent legal person, the parent company and the subsidiary have their own independent rights in production and operation, but in fact it is the relationship between management and being managed.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. 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.