Jiang Qi
JIANG QI, DIRECTOR of the Shanghai office of Hylands Law Firm and chairman of its national board of directors, opened this session. Centring on the theme of outbound investment, Jiang put forward two core arguments: First, Chinese enterprises require the tripartite collaboration of specialist lawyers, industry lawyers and local counsel to safeguard their operations; second, expanding overseas should not merely be about risk mitigation, but also value creation. In terms of disputes, he quips that arbitration should be viewed not as ADR (alternative dispute resolution), but as FDR (first-choice dispute resolution), while further advising businesses to prioritise Chinese arbitration institutions whenever feasible.
Glory Guan
Glory Guan says Chinese intelligent-connected vehicles (ICVs) face systemic restrictions in European and US markets. Under the impact of the EU’s anti-subsidy investigation and the new US ICTS regulations, exports are effectively being “encircled and intercepted”. Although China now leads the world in total automobile exports, exports to the US account for less than 2%, and the US ICTS rules serve to further restrict relevant Chinese industries.
Therefore, she advises businesses “not to put all their eggs in one basket” and adopt a diversified layout strategy. She recommends avoiding the excessive concentration of supply chains, production, or legal entities, and paying close attention to the BIS 50% rule.
Jean Jiang
Lalatech’s overseas brand, Lalamove, operates in regions such as Southeast Asia and South America. Its primary challenge lies in the fragmentation of global regulations regarding data protection. Jean Jiang says the company encounters three main difficulties: First, requirements for cross-border data transmission vary between jurisdictions; second, standards for the classification and management of “sensitive data” are not unified; and third, there is friction between compliance processes and operational efficiency, as cumbersome data transmission mechanisms potentially affect global scheduling and order response speeds.
To address these challenges, Lalamove implements numerous measures, says Jiang, including establishing a global compliance framework, refining data classification and tag management, and appointing data protection officers (DPOs).
Kobe Liu
Kobe Liu believes that regarding global IP strategy, the primary question for outbound businesses is not “how to do it”, but rather if it is worth doing at all. In jurisdictions where IP protection systems are not yet robust, even if relevant laws exist, their actual enforcement may fall short significantly from written regulations. Therefore, he believes companies must carefully evaluate whether a patent that might take 20 years to yield results is worth applying for at present.
Furthermore, given the premise of limited resources, Liu advocates concentrating efforts on targeting high-value core patents. He suggests validating core patents domestically before bringing them overseas. Regarding market access, China’s technical and compliance standards in the smart manufacturing industry are already cream of the crop, so applications pose few problems. However, the biggest challenges stem from export controls and supply chain shifts caused by geopolitical factors. These issues can make things difficult for Chinese enterprises, such as the possible need for repeated certifications when replacing core components.
Wei Hua
As a representative of multinationals at the panel, Wei Hua shared two observations on compliance systems for outbound Chinese enterprises. First, compliance is fundamentally a cost rather than revenue; therefore, businesses need to plan their compliance investment according to their stage of development. For smaller-scale companies focused on business growth, the return on investing in a massive compliance system may be limited, making the use of external counsel perhaps more practical.
Second, a gap remains between some Chinese businesses and the more mature practices of developed countries on legal mindset and investment. Often, companies only turn to local lawyers when problems arise in their overseas operations. “Legal departments act like an ambulance. When a business climbs a mountain and falls, we drive them to the hospital,” she says. “What we hope to do is to build ‘safety nets’ at critical positions on the mountain.” This, she says, requires in-house counsel to constantly remind the management of the importance of investing in legal.
Xu Suosheng
Xu Suosheng, speaking from the perspective of an arbitration institution, offers three suggestions for enterprises going global during contract signing: First, establish flexible mechanisms within clauses, such as price adjustments, to cope with changes in the external environment; second, keep in mind the international law and universally accepted international rules; third, unify dispute resolution clauses across related contracts.
In complex cross-border transactions, there is often a series of upstream and downstream contracts. She advises businesses to unify core elements – arbitration institution, the seat of arbitration and the governing law – across all such contracts. This can effectively avoid future disputes over jurisdiction and the application of law, and improve the efficiency of resolutions.
Zhou Qing
Zhou Qing argues that Chinese electrical companies should dynamically adjust their dispute resolution strategies as they progress through different stages of internationalisation. He identifies four key phases: (1) Product exports. When disputes typically arise from overseas buyers defaulting on payments, arbitration is recommended to balance enforceability and applicable law; (2) Chinese firms establish overseas trading companies, when disputes become more varied, making litigation potentially more suitable than arbitration; (3) Overseas turnkey projects, where dispute resolution clauses are often the product of compromise, leaving limited room for autonomous choice; and finally (4) Diversified overseas investment, such as owning renewable energy projects abroad or establishing production and R&D facilities through greenfield investments, which significantly strengthens the company’s negotiating position.
However, Zhou cautions that Chinese companies frequently pay a double premium in M&A deals, necessitating considerable compromise.
Oliver Wu
Oliver Wu likens the collaboration between external and in-house lawyers in dispute resolution to artillery and ammunition on the battlefield, requiring close co-ordination. External lawyers serve as the artillery, responsible for determining when and where to fire, taking the form of litigation or arbitration strategies and managing procedures. In-house legal teams, meanwhile, are tasked with supplying the ammunition by gathering, organising and co-ordinating evidence. As Wu observes, poor internal collaboration is akin to firing a dud shell. “No matter how timely or accurate the shot, it will prove futile,” he says.
Jessie Yao
Jessie Yao concludes that, in an era where globalisation and deglobalisation coexist, compliance is no longer merely a cost but a core competitive advantage. Likewise, dispute resolution has evolved beyond straightforward litigation into a holistic endeavour encompassing legal, commercial and geopolitical considerations.
“This requires companies to not only understand international rules but also develop the capacity to shape and apply them,” she says. “Beyond establishing static compliance frameworks, businesses must cultivate the resilience to navigate dynamic risks and the agility to adapt to rapid changes.”
