WeWork has a complex and costly business in China, which it cites 173 times in IPO filing

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WeWork has a complex and costly business in China, which it cites 173 times in IPO filing
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WeWork owns 59% of ChinaCo, its joint venture in China, where it has an expanding footprint.

But with that access comes a huge amount of economic and political risk. In addition to dealing with a country that, by many foreign policy experts, is considered the No. 1of the U.S., WeWork acknowledges that its operations in China are run by groups that it can't control, that locals laws are different in terms of the length of leases and that it's subject to the 2017 China Cybersecurity Law, which allows for government scrutiny of data storage and security., which has been roiling U.

WeWork opened an operation in Shanghai in 2016, a year before creating a joint venture with $500 million in capital from Japan's, and Chinese firms Hony Capital and Trustbridge. WeWork owns 59% of ChinaCo, which is the exclusive operator of the company's business in China, Hong Kong, Taiwan and Macau.

"Excluding the China Region, our contribution margin percentage for the six months ended June 30, 2019 would have been approximately three percentage points higher," WeWork said.

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