Linklaters' Fay Zhou on China's Regulatory Crackdown

The video discusses the evolving regulatory landscape in China, focusing on competition, compliance, and the impact on both domestic and foreign companies. It highlights client concerns, regulatory actions, and the legal system's adaptability. The discussion also covers the future of Chinese tech companies and their potential to list abroad.

What is the main focus of the consistent policy direction in China's regulatory landscape?

• Reducing foreign investments

• Enhancing competition, awareness, and compliance

• Promoting local businesses only

• Increasing tax rates

What is a common concern among companies regarding regulatory crackdowns?

• Decreased consumer demand

• Increased taxes

• Losing market share if they comply while others don't

• Lack of government support

What approach are authorities taking to encourage compliance among companies?

• Onsite support and self-assessment

• Public shaming

• Immediate fines and penalties

• Tax incentives

How are authorities balancing compliance with business operations?

• By shutting down non-compliant businesses

• By increasing fines

• By offering tax breaks

• By reducing the impact on business operations

What is a potential area of scrutiny for foreign investments in China?

• Investments in the digital space

• Investments in agriculture

• Investments in tourism

• Investments in manufacturing

What is the current status of the VIE structure for Chinese tech companies listing abroad?

• Completely banned

• No longer relevant

• Still under discussion

• Fully approved

What is a misconception that might affect foreign investments in China?

• Common prosperity theme

• High labor costs

• Lack of skilled workforce

• Poor infrastructure