$2 Trillion Invested in Chinese Companies, but US Investors Have No Visibility or Control
Zooming In China
US investors have no control over the Chinese companies they invested $2 trillion into, because these companies are structured as Variable Interest Entities (VIEs). With VIE, the Chinese companies are registered in Cayman Islands but they are only the shell companies of the real entities in China. Therefore, by owning stocks of the Cayman Island shell companies, US investors have no control over the real companies located in China. DIDI, Alibaba and others all fall into this scenario.
Watch Part 1 of this interview: https://www.youtube.com/watch?v=7bJ1JFZ3xOEh
The road to security regulation internationalization was based on the principle that all sellers played by the same rules. The continuing emergence of Chinese state owned enterprises on the American based New York and NASDAQ exchanges is stacking the deck against American companies and intensifying the risks that investors are taking.
Under Secretary of State has championed the cause to protect the average American from unknowingly funding the Chinese Communist Party’s human rights abuses