A confluence of two events has the potential to curtail a type of US investment in China that may currently be flying under the radar. The first is a white paper recently released by a group of academics, which details the...more
On December 27, 2021, the National Development and Reform Commission (“NDRC”) and the Ministry of Commerce jointly issued the Special Administrative Measures (Negative List) for Foreign Investment Access (2021 Edition)...more
On July 30, 2021, Securities and Exchange Commission (“SEC”) Chair Gary Gensler issued a public statement announcing that he has asked SEC staff to require additional disclosures from offshore issuers with ties to China-based...more
On Friday, SEC Chair Gary Gensler issued a statement concerning investor protection related to recent developments in China. The statement summarizes risks to US investors as a result of recent government-led developments in...more
Last month we alerted our clients to the expected impact of the Implementation Rules for the Law for Promoting Private Education (“Education Sector Implementation Rules”), which signaled a continued focus by the authorities...more
The first installment of a series of alerts focusing on practical issues relating to China’s new Foreign Investment Law. The law institutes new reporting requirements for foreign investors....more
On November 1, 2019, China's Ministry of Justice ("MOJ") released a draft version of the Implementation Regulations on the Foreign Investment Law ("Draft Regulations"), aimed at facilitating the new Foreign Investment Law...more
This edition provides an overview of key regulatory developments in the past three months relevant to companies listed, or planning to list, on The Stock Exchange of Hong Kong Limited (HKEx), and their advisers. In...more
In less than six months, a new law will take effect in China that will have a major impact on foreign investment. The National Congress of the People’s Republic of China passed the Foreign Investment Law in March, three years...more
China presents some of the world’s most exciting opportunities, and a unique set of cultural, legal and political challenges. It has a distinct legal regime that in many respects cannot be understood by direct reference to...more
A 2016 judgment (the “Judgment”) made by the Supreme People’s Court of China (the “Supreme Court”) was believed by some scholars and practitioners to confirm judicial recognition of the VIE structure. We believe the Supreme...more
The Chinese regulatory regime governing e-commerce has been constantly evolving as domestic and cross-border e-commerce continues its rapid growth. Recently, the regulatory environment has opened up in several ways:...more
The variable interest entity (VIE) structure has been around since the listing of Sina.com on the Nasdaq Stock Market in 2000. It enables companies to exercise control over operating entities and derive economic benefits from...more
China’s Ministry of Commerce (MOFCOM) has issued a draft Foreign Investment Law for public comment. The draft law (the Draft) will almost certainly not become law until 2018 at the earliest and changes are likely before...more
On January 19, 2015, China’s foreign investment regulatory authority Ministry of Commerce (“MOFCOM”) released a draft of new Foreign Investment Law (“Draft Law”) (See blog article Comparison Chart re JV Law and Foreign...more
On January 19, 2015, the Chinese Ministry of Commerce (“MOFCOM”) released the draft Foreign Investment Law (the “Draft Law”) for public comment. The public consultation period will end on February 17, 2015, after which the...more
For more than a decade, variable interest entities (“VIEs”) have been used as investment vehicles for foreign companies to indirectly invest in China’s restricted and prohibited industries as well as for Chinese domestic...more
Since its first use by Sina Corporation in 2000, the VIE structure has been widely adopted by many Chinese companies to attract foreign investment and complete offshore listings. While companies operating under VIE structure...more