China May Soon See Variable Interest Entity M&A Review

By Wei Huang and Chang Gao (April 30, 2019, 5:01 PM EDT) -- Variable interest entity, or VIE, structured companies have existed in China for more than 20 years and have spurred endless discussion on VIE-related issues. It is commonly thought that relevant Chinese regulators as well as the judiciary were reluctant to provide feedback on matters involving such structures. Even the new foreign investment law, which was issued by the National People's Congress on March 15, 2019, chose to lay aside the VIE issue, taking a big step back from the 2015 exposure draft.[1] ...

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