China Matters

China Matters: New Rules Prohibiting Foreign Investment in the Chinese Online Gaming Companies Further Threat to the Variable Interest Entity Structure?

October 26, 2009

By Maurice Hoo and David S. Wang

On September 28, 2009, the General Administration of Press and Publication (GAPP), the National Copyright Administration (NCA) and the National Anti-Pornography and Anti-Illegal Publications Working Group Office jointly issued the Circular on Consistent Implementation of Stipulation on Three Provisions of the State Council and the Relevant Interpretations of the State Commission for Public Sector Reform and the Further Strengthening of the Pre-approval of Online Games and the Approval and Examination of Imported Online Games () [Xin Chu Lian [2009] No. 13] (Circular 13), which prohibits foreign investors from directly or indirectly investing in Chinas online game industry.

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