TIPS, that is Treasury Inflation Protected Securities, offer fixed annual interest payments, but with TIPS the final repaymentofprincipal varies with the Consumer Price Index.
Depending upon the amount of registered capital invested, the foreign shareholder may make shareholder loans to the WFOE, with payments of interest and repaymentofprincipal not subject to profitability.
Woosung Tire can thank its creditor banks for most of its profits: they agreed to waive interest and principalrepayment on its debt, allowing it keep the money as earnings.