The Exchange Conference on Legal Risk and Compliance Management of Chinese Enterprises' Investment and Economic Cooperation in Africa Were Successfully Held
Release time：2020-12-11 15:40
At the 20th anniversary of the establishment of the Forum on China-Africa Cooperation, China-Africa economic and trade exchanges and investment have reached unprecedented heights thanks to the successful implementation of the Forum’s achievements and the vigorous development of the “Belt and Road” initiative. At the same time, Chinese companies have a growing need for in-depth understanding of the legal environment of African countries and for legal and compliance operations. On December 2, Beijing DHH Law Firm and the African Law Research Center of the Institute of West Asian and African Studies of the Chinese Academy of Social Sciences jointly released the "Survey Report on the Legal Services Needs of Chinese Enterprises in Africa" in Beijing. The legal risk and compliance management exchange meeting of investment economic and trade cooperation, with a view to provide better legal and compliance management guidelines for Chinese companies "go to Africa".
The meeting was hosted by Ms. Dai Ying, a senior consultant of Beijing DHH Law Firm
Liu Kejiang, Director of Beijing DHH Law Firm attended the press conference and delivered a speech
Chen Xieying, Chairman of the African Business Union, delivered a speech at the meeting
Zhu Weidong, Director of the African Legal Research Center of the Institute of West Asia and Africa of the Academy of Social Sciences, delivered a keynote speech entitled "China-Africa Investment and Dispute Analysis"
Miller, French consultant of Beijing DHH Law Firm, delivered a keynote speech on "African Investment Potential, Major Legal Risks and Countermeasures"
Representatives were from the African Business Union, the China-Africa Production Capacity Cooperation Fund, the Institute for West Asia and Africa, the Institute for West Asia and Africa, the Institute for West Asia and Africa, the Institute for West Asia and Africa, the Forum for China-Africa Industrial Cooperation and Development, and the Atlantic Petrochemical Corporation, Fukuda Investment, China Non-Ferrous Metals Investment, Nokia Consulting, Wambang and China Star Investment and more than 20 enterprises with investment and trade business in Africa.
The participating enterprises spoke enthusiastically. Xinhua News Agency, People's Daily Overseas Network, CGTN French-speaking Channel, Global Network, Beijing News and other media reported the meeting.
The release of the "Survey Report on Legal Services Needs of Chinese Enterprises in Africa" became the highlight of the meeting. Consultant Dai Ying introduced the research process and highlights of the research report. This survey collected effective answers from 50 Chinese companies in nearly 30 African countries, and formed a survey report on this basis. The main characteristics of the interviewed sample companies: mainly large and medium-sized enterprises, mainly in the field of construction engineering contracting and energy. In addition, there are also Chinese companies that have entered the emerging African market in new energy, digital television, education and training, and environmental protection; among the sample companies, 41 companies entered the African market after 2000, the same time as the launch of the China-Africa Cooperation Forum.
In the local operations in Africa, 100% of the sample enterprises participating in the survey have encountered legal disputes or difficulties, which are mainly reflected in the fields of labor relations, taxation and contract disputes.
What is worthy of recognition is that whether it is the legal literacy of practitioners, the review of important contracts, and the proper custody of relevant documents, the efforts made by Chinese-funded enterprises in legal and compliance operations have achieved significant results. According to survey data, 82% of the interviewed sample companies’ personnel responsible for signing foreign contracts have a certain understanding of local laws and regulations, and 78% of companies hire lawyers to review common contract templates.
While Chinese companies are "going out", China's foreign-related legal services should also strive to keep up. The research report shows that when Chinese companies investing in Africa appoint lawyers, they first rely on local lawyers, followed by local or European and American lawyers recommended or co-operated by Chinese lawyers, and then Chinese lawyers with knowledge of international and local laws. This phenomenon is also due to the judicial sovereignty and complex legal systems of various countries, and practitioners holding local lawyer certificates often have more convenience. In the future, it can encourage the development of a joint cooperation model between Chinese lawyers and local African lawyers, and accelerate the internationalization of the Chinese legal industry.
The new crown epidemic in 2020 has brought many uncertain factors to Chinese-funded enterprises' investment and trade in Africa. This survey specially added the observation perspective of "epidemic impact". According to the survey results, delays in the performance of commercial contracts, breach of contract, inability of employees or dismissal are two issues that are commonly affected by Chinese companies. At the same time, 20% of the interviewed sample companies expressed concern about changes in local business policies because African countries have introduced epidemic prevention and control measures or temporary policy adjustments. In the next one or two years, related corporate disputes may show an upward trend.
Legal services are indispensable for the stable development of Chinese-funded enterprises' investment and operations in Africa. Chinese foreign-related lawyers can escort companies from the following three dimensions: 1) Strengthen the online and offline legal training of relevant personnel of the company, simulate legal scenarios, and improve the ability to respond to risks; 2) Accept the company’s employment and participate in the company’s overseas Investment compliance building; 3) Strengthen exchanges with local law firms in Africa and establish strategic partnerships.
Although the new crown epidemic will have an impact on the global economy, including Africa, in a short period of time, the overall development trend of Africa is unstoppable, and China-Africa cooperation will also benefit from the continuous development of China-Africa friendly relations, bursting with new vitality . China's foreign-related legal service industry should seize the opportunity of the great era and make its due contributions to Chinese companies going overseas and China's economic globalization.
The lawyers, business representatives and scholars of Beijing DHH Law Firm took a group photo
Since its establishment, Beijing DHH Law Firm has been one of the fastest growing law firms in the Asia-Pacific region. In 2020, Beijing DHH Law Firm ranked seventh in the list of the 30 largest Chinese law firms in 2020 ALB China. The African Legal Service Center of Beijing DHH Law Firm is composed of senior lawyers with different jurisdictions and language backgrounds, providing high-quality and efficient legal services for Chinese companies entering Africa.