New China Supreme Court decision on VIEs | China Accounting Blog | Paul Gillis

New China Supreme Court decision on VIEs

There has been an important decision in China with respect to the enforceability of VIE contracts.

The attached article (in Chinese) explains a decision of China’s Supreme Court upholding the enforceability of Ambow Education’s VIE contracts. I am going to wait for some Chinese lawyers to better explain the rationale of the case, but it seems to rest on the conclusion that the arrangements do not result in impermissible foreign control of restricted industries. That would seem to be contrary to earlier decisions.

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