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China VIE structure for foreign investment under attack from multiple directions

February 2012 - Finance. Legal Developments by Hogan Lovells.

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will it emerge (relatively) unscathed or is its very survival threatened?

Historically the VIE structure and its predecessors essentially came about as a "workaround" to allow indirect non-equity based "investment" in industries in China in which foreign investment was restricted or prohibited, e.g., telecommunications services and media.  

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