Publish time: Mon Jun 27 00:00:00 CST 2011
On June 21, 2011, a Forum entitled “Legal Risk Management for Domestic Companies Investing and Doing Business Abroad” was held at the the BAC’s International Conference Hall, co-sponsored by the BAC and the China Group Companies Association (“CGCA”). Some 20 experts from large-scale state-owned enterprises, multi-national companies, administrative authorities, law firms, and other organizations attended and discussed ways to improve legal risk management mechanisms for overseas investment and operations. Over 100 counsel from state-owned enterprises and foreign-funded companies attended the forum.
Mr. Han Xiuguo, head of the State Assets Administration Committee’s Inspection Team, and Executive Vice-President of CGCA, delivered the opening remarks On the theme of “exchanging experiences, sharing knowledge, offering suggestions,” inviting Chinese enterprises to properly attend to the legal risks in overseas investment and iterating some of the actual issues and challenges currently faced by Chinese enterprises wishing to “Break Out.”
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| Mr. Han Xiuguo,Executive Vice President of CGCA, addressing the conference | Mr. Zhang Chongqing, Executive Vice President of CGCA, presiding over the first part of the conference in the morning |
Next, Mr. Zhang Chongqing, the Executive Vice-President and CGCA General Secretary gave a speech entitled “Struggling to promote and improve the legal infrastructure for overseas investment.” In his speech, Mr. Zhang Chongqing noted that “although the conference hall is simple and austere, we are honored with the presence of distinguished experts and guests. This conference is realistic, practically useful, and top-level.”
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| Mr. Liu Xinquan, the general counsel of Wuhan Iron and Steel (Group) Corporation, giving a speech | Interactive exchange activities and discussions |
In the morning’s keynote speech, Mr. Liu Xinquan, General Counsel and Assistant General Manager of Wuhan Iron and Steel (Group) Corporation pointed out that legal management systems in many China’s enterprises are no longer adequate for a “Breaking Out” overseas investment strategy. Meanwhile, Mr. Li Jian, the Export-Import Bank of China’s General Counsel, held that China’s enterprises should keep in step with one another and cooperate with one another to overcome overseas challenges. However, Dr. Sun Jin, Section Chief for the Ministry of Foreign Affairs’ Department of Treaty and Law pointed out that political and social risks may coexist in any target country, and that China’s enterprises must take these risks seriously. Moreover, he stressed that with China having more and more influence in international community, other countries are gradually attaching importance to China’s position on various matters. During the intermission break, Mrs. Wang Qiang, the Deputy Director-General of Ministry of Commerce’s Department of Treaty and Law, Mr. Shi Yuquan, Legal Director of China Aluminum Corporation, Mr. Yu Lemin, China Sinochem Group’s Legal Department General Manager, Mr. Gao Chuanjie, China Jianyin Investment Co.’s second-in-command, and Mr. Peng Xiaohua, Legal Advisor for the Asian Development Bank’s China branch, respectively expressed their opinions about legislation for overseas investment by enterprises, selection of the appropriate form of investment relationship, and selection of appropriate investment partners and targets, based on real examples they recounted from their overseas investment experience.
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| Li Jian, the general counsel of the Export-Import Bank of China, giving a speech | Dr. Sun Jin, the section chief of Department of Treaty and Law of the Ministry of Foreign Affairs, giving a speech |
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| Mrs. Wang Hongsong, the General Secretary of BAC, presiding over the themed speech in the afternoon | Mr. Chen Sheng, the deputy director general of China Banking Regulatory Commission |
In the afternoon, Dr. Chen Fuyong, the BAC’s Office Director of Division 3rd, gave a speech entitled “Risk Management in Resolution of Foreign-related Disputes.” First of all, he pointed out some of the main issues faced by China’s enterprises in managing the risks which pertain to resolving foreign-related disputes; he also heavily stressed the importance of investing serious thought into appropriate contractual clauses for dispute resolution, and bringing the matter up during negotiations. He additionally offered some advice on how to persuade foreign partners to accept China as an place of arbitration. Mr. Chen Sheng, Deputy Director-General of the China Banking Regulatory Commission’s Legal Affairs Department, provided a detailed analysis of the role of bank guarantees in expanding the overseas market for China’s enterprises. The final part of forum was presided over by Mr. Tao Guzhong, Senior Legal Counsel for Nokia Siemens Networks Company’s China branch, Mr. Li Jinsong, General Counsel for China Travelsky Holding Company, Mrs. Bao Chunli, Section Chief for China National Offshore Oil Corporation’s (CNOOC) Policy Research Office, Mr. Tian Jigeng, Senior Legal Counsel for Cisco’s China branch, and Mrs. Pei Ying, Legal Director for Glencore’s Beijing branch, expressed their respective views on the direct feedback system employed by Chinese enterprises and how it may be improved, while sharing some of their relevant experiences.
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| Mr. Tao Guzhong, the senior legal advisor of Nokia Siemens Networks (China) Co., Ltd presiding over the interactive activity in the afternoon | Mr. Li Jinsong, an arbitrator of BAC and general counsel of China Travelsky Holding Company, expressing his opinions |
The day-long conference concluded with an opportunity for attendees to meet and discuss with each other. All were of the opinion that the conference covered both cutting-edge topics and very practical issues, and that speakers gave lively and comprehensive speeches. They found the conference to be a novel, positive experience, and acknowledged the role of BAC and CGCA in providing such a chance for counsel to share experiences and discuss current issues.
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| At the conference |