News Analysis U.S. investors have trillions of dollars invested in Chinese variable interest entities (VIEs) without knowing it. These are illegal contracts under Chinese law and could be shut down by Chinese regulators at any time. When U.S. investors buy shares of Chinese companies, particularly internet companies, on NYSE and NASDAQ, they generally do not own shares in the actual company. They own shares in Cayman Island shell companies that have no employees and no buildings—an entity whose only assets consist of contracts with the real company, which is privately held back in China. The Chinese Communist Party (CCP) restricts foreign investment in certain sectors such as education and e-commerce, the internet, and certain technologies; while others are completely off-limits such as nuclear weapons. China does not allow foreign companies to operate an internet company. They would need to have an internet providers license, which will not be given to …