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It's illegal for foreigners to own a Chinese company. A shell company based in the Caribbean is publicly traded. It owns no assets. https://www.barrons.com/art
by aslkdjaslkdj1 8y ago
It's illegal for foreigners to own a Chinese company. A shell company based in the Caribbean is publicly traded. It owns no assets.
https://www.barrons.com/articles/beware-the-pitfalls-of-the-offshore-chinese-shells-1514600415 https://www.barrons.com/articles/beware-the-pitfalls-of-the-...
- adventured 8y agoIt is not illegal for foreigners to own part of Chinese companies. It's generally illegal for a single foreign entity to own a controlling interest. Softbank and Yahoo invested into Alibaba relatively early on. It was incorporated in China. Their positions represented the majority of shares in the business, just not individually.
- dnomad 8y ago> It's generally illegal for a single foreign entity to own a controlling interest. This is also not true. China, like all developing economies that have reached the global stage, allows WFOEs and FICEs [1]. There's significant taxes involved but these taxes are being decreased all the time . (It's quite remarkable the stuff people believe about doing business in China. Really have to wonder where these ideas come from.) [1] https://en.wikipedia.org/wiki/Wholly_Foreign-Owned_Enterprise https://en.wikipedia.org/wiki/Wholly_Foreign-Owned_Enterpris...
- Catsing_Cats 8y agoThere are severe restrictions on WFOEs. For all practical purposes they're useless for running a domestic tech business. Really recommend this write up on VIEs and Alibaba: https://www.hbs.edu/faculty/conferences/2017-imo/Documents/Mark_Lang_HLZ.pdf https://www.hbs.edu/faculty/conferences/2017-imo/Documents/M...