The Role of Variable Interest Entities (VIEs) in China's Economic Development and Regulatory Landscape

DOI

10.2991/978-94-6463-811-0_87How to use a DOI?

Keywords

Variable Interest Entities; China's Economic Development; Regulatory Landscape

Abstract

This article will delve into the special structure of Variable Interest Entity (VIE), which is widely used in the business field in China. The VIE model provides an effective way for domestic companies to obtain foreign investment when facing strict local regulatory restrictions. Over the years, the VIE structure has played a key role in driving the flourishing development of major technology companies in China, helping numerous enterprises achieve rapid expansion and innovation. However, with its widespread application, VIEs have also raised a series of significant legal and financial issues, such as contract dispute risks and regulatory challenges caused by opaque information disclosure. This article will use Alibaba as a typical case study to conduct a detailed examination of the structural characteristics, potential advantages, risks faced, and potential impacts on the future business and regulatory environment of VIEs. A deep understanding of the VIE structure is of crucial importance for policy makers, investors, and companies themselves in responding to the constantly changing regulatory environment.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Taiyu Yiu
PY  - 2025
DA  - 2025/08/14
TI  - The Role of Variable Interest Entities (VIEs) in China's Economic Development and Regulatory Landscape
BT  - Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)
PB  - Atlantis Press
SP  - 809
EP  - 815
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-811-0_87
DO  - 10.2991/978-94-6463-811-0_87
ID  - Yiu2025
ER  -