Feb. 10, 2015 (China Daily) -- On Jan 19, the draft of China's Foreign Investment Law was released for a public comment period that runs until Feb 17. One of the most significant changes in the draft legislation is the adoption of a de facto review of the variable interest entity, or VIE, structure of corporate ownership. This is a workaround structure that is used by foreign and Chinese investors in many industries where foreign direct investment is restricted or prohibited in China. Under a VIE structure, a Chinese entity holding all the necessary licenses to operate a business in a restricted or prohibited industry is de facto controlled by a wholly foreign owned enterprise through contractual arrangements. The profits of the domestic entity flow back to the controlling WFOE or joint venture. This arrangement enables foreign investors to engage in Chinese industries that they would otherwise be excluded from by law.