Which indutries requries governmental approval for a WFOE setup?
Until 2013, the industries require governmental approval are agriculture and waterforce, engergy, transportation,radio & telecom, machinery manufacturing (automobile & ship), ,light industry (tabacco), civil aircraft industry, city construction, social cause and finance industry.

What advantages after the WFOE is set up?
After the WFOE is set up, the WFOE can conduct business according its business scope and issue official invoice to clients in China. The business transaction can be operated by local currency-RMB.
Meanwhile a WFOE can hire local employees legally and expat staff.
For many investors, a WFOE enable them to apply for resident permit in China which allow them to stay and work in China.

Can the profit made by WFOE be transferred back to the investor?
Yes. To transfer the profit back, the WFOE should pay extra 10% of the profit as tax. All  should be conducted under one condition which is that the profit is already audited by charted public accountant and approved by national tax bureau.
There is another way to transfer the profit, which is lending to the investor. While the profit shall be returned by the investor within two years.

How to cancel a WFOE?
To cancel a WFOE, you need cancel all registration from governmental bodies. The process is more complicated than setting up a WFOE as the governmental bodies need make sure all debts have been cleared and the cancelling has been announced to the public officially.
The whole process takes around 4 months.

How is the capital used after the investment fund is transferred?
According to the Foreign Currency Administration, the capital can be used as reservation fund. The reservation fund covers WFOE salaries, social welfare, office rental & travel fees. But if the capital is used for other purposes, related invoices shall be provided.