Publish time: Tue Jul 03 14:13:58 CST 2018
On 11 May 2018, the “Legal Risk Prevention and Dispute Resolution in Belt and Road Initiative Projects” panel discussion was successfully held in the international conference hall of the Beijing Arbitration Commission / Beijing International Arbitration Center (the “BAC”). Dr. Li Fuying, Director of the Legal Affairs Office of Beijing municipal government and Executive Vice Chairperson of the BAC, Mr. Lin Zhiwei, Committee Member and Secretary General of the BAC, Dr. Chen Fuyong, Deputy Secretary General of the BAC, Hong Kong legal and dispute resolution experts led by Ms. Teresa Cheng, SC, Secretary for Justice of Hong Kong SAR and part of BAC arbitrators were present at the event.
The in-depth progress of the Belt and Road Initiative has provided Chinese enterprises with extensive opportunities of “going abroad”. However, the huge discrepancies lie in political, economic, cultural and legal systems of countries along the Belt and Road require that Chinese enterprises lay emphasis on the prevention of relevant legal risks and improve their dispute resolution capability, so as to ensure the safety of their overseas interests. Dr. Chen specifically introduced the background of organizing such an event, and expected that the participants could have an in-depth discussion on topics in this respect based on their respective practice experience, aiming at the solution of practical problem in the “going abroad” process. Ms. Teresa Cheng, SC said that Hong Kong colleagues expertized in law and dispute resolution not only hoped to provide qualified legal service for Chinese enterprises for their dispute resolution in Belt and Road projects, more importantly, they looked forward to promoting the “going abroad” of Chinese enterprises from the perspectives of transaction facilitation and risk management, as well as protecting Chinese enterprises’ overseas interests. Along with other Hong Kong legal and dispute resolution experts, she conducted extensive exchanges with speakers invited by the BAC during various sessions of the panel discussion.
Ms. Lo Yuen Man, Partner and Head of China Practice of Mayer Brown JSM, shared her practice experience concerning the core risks such as political risk, legal risk, construction period risk and operation risk that may happen to Belt and Road infrastructure projects. Ms. Vivian Lam, Partner of Paul Hastings LLP, and Ms. Xia Zhuoling, Partner of Corporate and Commerce Dept. and Head of Global Anti-Corruption Practice of Mayer Brown JSM, shared their views respectively on issues of financing and regulation confronting Chinese enterprises in Belt and Road projects. Mr. William M.F. Wong, SC and Mr. Adrian Lai of Des Voeux Chambers then provided suggestions on Chinese enterprises’ response measures in their overseas dispute resolution procedures.
Mr. Wang Shubao, General Counsel and Director of Legal and Risk Management Dept. of Power Construction Corporation of China and BAC arbitrator, thought that there are mainly three types of risks for Chinese enterprises that are going abroad, including political risk, commercial risk and technical risk. He said that the Hong Kong legal professionals may strengthen their exchanges and cooperation with Chinese enterprises and thereby reach a win-win outcome of Belt and Road projects. Mr. Li Zhiyong, Deputy GM of Legal and Risk Dept. of PowerChina International Group Limited and BAC arbitrator, stressed that in light financing has been an increasing challenge in overseas construction projects, Chinese enterprises should be internally well prepared for potential disputes. Meanwhile, Chinese contractors has been gradually holding the initiative in Belt and Road projects and trying to insist on Chinese local arbitration institutions such as the BAC as their dispute resolution institution. Ms. Cao Hui, Legal Director of Silk Road Fund, said that Belt and Road projects need capital support from China, but in the financing of those large scale projects, it is a key point to ensure capital safety. Thus she suggested that dispute resolution lawyers review and share their own practice experience and improve Chinese enterprises’ capability of risk prevention throughout the financing process. Mr. Lv Guoping, General Counsel of China General Technology (Group) Holding Co., Ltd. and BAC arbitrator, said that Belt and Road projects are facing a wider scope of investment, which made Chinese enterprises pay close attention to dispute resolution, and expect to strengthen their contacts with Hong Kong arbitration institutions and legal experts. Mr. Liu Xinquan, President of Corporate Legal Affairs Branch of China Iron and Steel Association and BAC arbitrator, thought that Chinese enterprises are having increasingly in-depth research of the world market and laws during their decision-making, and the Hong Kong legal circle could exploit its advantage of geographical adjacency to Guangdong province and Macau, and work closely with Chinese enterprises, to achieve a long-term development of Belt and Road projects.
In the speakers’ friendly exchanges, the panel discussion came to a successful end.
The BAC has been constantly paying attention to the exchange and cooperation with legal and dispute resolution professionals, expecting to establish a platform and promote the exchange between Chinese enterprises and the Hong Kong legal and dispute resolution circle, and to provide diversified services for Chinese enterprises’ “going abroad”. Anyone interested in diversified dispute resolution is welcomed to continue to pay attention to the BAC website and WeChat account for more information.