Kendra Schaefer 凯娜

"That means [Chinese tech companies have] entered a new stage - the compliance stage. In the new stage, Internet companies need to regard compliance with laws and regulations as an important part of their continued operations." 5/16

"In the barbaric growth stage, internet companies have been laissez-faire about [security and compliance]. In additional to long-standing problems such as personal information collection and cross-border data flow, there are also huge hidden dangers at the capital level." 6/16

"China has restrictions on foreign investment in certain areas such as the Internet, news media, education, and finance. However, through the VIE structure, foreign investment has bypassed many investment restrictions and has entered almost all areas of China's Internet." 7/16

"It is undeniable that the VIE structure made important contributions to the development of China's Internet. ... But through the VIE structure, almost all Internet companies in China have their rights and interests in foreign countries first." 8/16

"This backwards situation has become a huge hidden danger in national network security. Therefore, these Chinese Internet companies should step out of the gray area of ​​the VIE structure and move toward a more rational and normalized corporate governance structure." 9/16

"[They should adopt a] structure that not only meets the needs of national cyber security, but also facilitates corporate financing and listing, and [facilitate] opening the industry [through] sound development practices." 10/16

"In short, next, Chinese Internet companies must step out of the comfort zone of barbaric growth and adapt to China’s new institutional environment and the basic requirements of network governance." 11/16

"Compliance [is not only about] risk management for Chinese Internet companies, but also the only way for companies to cope with the increasingly complex international environment and seek greater certainty." 12/16