What kind $of$ risks $do$ related$-$party transactions pose $to$ the usefulness $of$ financial reporting $by$ Chinese enterprises that are partly owned $by$ the state? $Do$ current accounting and disclosure standards adequately address those risks?

What features $of$ the Variable$-$Interest Entity $(VIE)$ structure used $by$ Chinese companies $to$ list $onU.S.$ markets create the greatest risk for investors? Explain and defend your answer.