China tech wades through uncharted waters as old trust comes under new scrutiny

Source: Tech – South China Morning PostA once-unthinkable risk is looming large for China’s technology firms: the legitimacy of a legal corporate structure that allows them to take money from foreign investors.The so-called variable interest entity (VIE) structure has been in place for two decades, and it is the centrepiece underlying China’s tech sector boom – American venture capitalists are able to skirt Chinese regulatory restrictions to profit from services in China, while Chinese entrepreneurs can use foreign money to engineer…Read More

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