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This wikipedia article "Local Church Controversies" delineates the LC positions ...

Watchman Nee taught that the universal church, the Body of Christ, is properly expressed in local churches, that is, local assemblies consisting of all believers in their respective localities. His most comprehensive exposition of this principle can be found in The Normal Christian Church Life, although there are significant treatments of the subject in other books as well. This teaching is based on the New Testament examples of the church in Jerusalem (Acts 8:1), the church in Antioch (Acts 13:1), the church in Corinth (1 Cor. 1:2), the seven churches in seven cities in Asia (Rev. 1:11), etc. Watchman Nee and his co-workers, including Witness Lee, established local churches throughout China according to this principle.

Witness Lee continued to follow and expound this principle in his work and ministry. He pointed out that in Acts 14:23 Paul and his co-workers appointed elders in every church upon their return to Lystra, Iconium, and Antioch, while in Titus 1:5, Paul charged his co-worker to appoint elders in every city. This, Lee said, showed that the elders in the church equaled the elders in the city, meaning that the boundary of the church was the city. Furthermore, he noted that even though there were thousands of believers in Jerusalem, the church there was referred to in the singular and there was only one group of elders in the church.

Witness Lee was often critical of the organized system of Christianity, saying that it had deviated from the biblical revelation. He identified three inherent deficiencies in this system:

• There are many substitutes for the living person of Christ;
• The clergy/laity system nullifies the proper function of the believers; and
• The divided state of the denominational/free group system is contrary to biblical injunctions to keep the oneness of the Body of Christ.