Legal analysis: if the parent company goes bankrupt, the subsidiary company does not need to cancel liquidation. A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law. Companies can 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. Therefore, if the parent company goes bankrupt, the subsidiary is still an independent entity and does not need liquidation.
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.