China may be creating a blacklist to make it more difficult for technology companies to receive foreign capital and to list abroad. according to the Financial Times.  

According to Wednesday’s reports, the blacklist may be released as soon as next month. Report, which quoted unnamed persons familiar with the subject.

It will include start-ups in sensitive sectors — such as those involving the use of data, or those that could pose national security concerns — that use the so-called variable interest entity structure, the FT reported.

VIE refers to a legal structure that is controlled by companies through other means than the majority vote. Many Chinese firms use VIE structures to bypass domestic restrictions and increase international funds. VIE Structures not Available Tech companies such as tech titans include these. AlibabaAnd Tencent.

According to the report’s conclusion, VIE-structured companies would be unaffected by the blacklist.