Billions of Dollars Invested in China’s Shell Companies US Investors Have No Control of: Keith Krach

2 years ago
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US Investors Have No Control over the Chinese companies they invested $2 Trillion into because these Chinese Companies use a structure called #VIE. 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.

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