The Globalization of Chinese Companies

Chinese companies are already deeply integrated into the global economy and increasingly are expanding their operations outside of China through the establishment of subsidiaries and off-shore acquisitions. The legal risks facing Chinese companies are increasing commensurately with their growth overseas.

The types of international legal services needed to support the global operations and aspirations of Chinese companies typically fall in the following categories:

• Corporate - mergers and acquisitions (M & A), establishment of subsidiaries, off-shore corporate reorganizations, etc.
• Commercial - cross-border sale / procurement of goods and services, sales channel management, labour law, product quality / product liability, anti-dumping and other trade-related issues, competition law issues, etc.
• Capital markets - raising of capital on international stock exchanges, including Hong Kong, London, Frankfurt and New York, and related corporate governance and compliance issues, etc.
• Commercial bank finance - forex loan facilities, giving and enforcement of related security, workouts and restructuring of debt, bankruptcy and insolvency-related issues, etc.
• Infrastructure projects (including energy and natural resources) - investments, strategic partnerships, construction, financing, related disputes, etc.
• Commercial disputes - international arbitration, local court actions in foreign jurisdictions, mediation, negotiated settlements, etc.
• Intellectual property - creation and protection of IP assets globally, enforcement actions and IP litigation, licensing, negotiated settlement of IP-related claims, pro-active use of IP for competitive advantage, etc.

The SGLA and the Lovells' global network can assist you with all of these international legal service requirements in a manner that helps you achieve your global ambitions and objectives.  

The Power of Teamwork

All cross-border commercial transactions and disputes are comprised of the following three core elements:

• the local China element (your commercial objectives and the rights and obligations of the parties under applicable Chinese laws and regulations, etc.)
• the cross-border element (international norms and practice, international transaction and dispute management and related strategy, tactics, documentation and negotiation or dispute proceedings)
• the foreign jurisdiction element (the respective rights and obligations of the parties under the applicable foreign laws and regulations).

In almost all cases, given the globalization of commercial transactions and increasing harmonization of related international norms and practices, of the three elements described above, the cross-border element consistently comprises the greater part of the total legal services value to your company, but each of the elements is of critical importance.

Accordingly, Chinese companies with international operations need a legal services partner who understands your company and the Chinese legal and commercial environment, is able to communicate effectively with both your management team and your in-house legal counsel, understands the legal risks faced by your company outside of China, and has a global network of international legal experts in all key practice areas.

The SGLA is your one-stop shop for all of your international legal services requirements. The local SGLA member firms, as well as the bi-lingual lawyers in the Lovells' China offices, know and understand you and the China commercial and legal environment and so can communicate effectively with your project team. Our local Chinese lawyers can provide on-the-ground assistance on China-related aspects of the transaction or dispute, while the Lovells' China team can coordinate the critical cross-border elements.

A Truly Global Network

No matter where the transaction or dispute is situated outside of China, the Lovells' global network can provide the full range of legal services for the foreign jurisdiction element. Lovells' own internal network is comprised of over 3,000 people operating from 27offices in Asia, Europe and the United States, making Lovells one of the 10 largest international law firms in the world. In jurisdictions where Lovells does not have its own office, it has long experience working with other leading law firms. This includes the relationships of the Lovells' Hong Kong office with the other member firms in the Pacific Rim Advisory Council or PRAC, which is comprised of leading law firms in the following countries and territories: Argentina, Australia, Brazil, Canada, Chile, China, Columbia, France, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Mexico, Netherlands, New Zealand, Peru, Philippines, Singapore, Taiwan, Thailand, USA and Venezuela.

In addition, one key competitive advantage of Lovells as a London-based international law firm in comparison with US-based international law firms is that Lovells has a long history of advising on and leading transactions and disputes in all parts of the world. Consequently, Lovells has deep practical experience in working with leading law firms in Africa, Latin America, Central and South Asia and all other leading jurisdictions. Through this long cooperation we have gained a deep understanding of how to work together effectively in the most cost-efficient manner, and we can identify the best law firm in each jurisdiction for the particular matter based on prior actual working experience.

Access to the Lovells' global network solves a key problem faced by Chinese companies as they try to manage their international legal problems. Because in-house counsel in Chinese companies and their local external lawyers have limited experience in dealing with law firms in foreign jurisdictions, it is difficult for them to know which firms to contact and select. In many cases, the selection of legal counsel in a foreign jurisdiction may be the result of a chance meeting or personal connections, which may not permit a Chinese company to identify the true leading firms in the local market. Through the Lovells' global network, however, Chinese companies can be confident that the local firm in the foreign jurisdiction (either Lovells' own office or its close working partner in that jurisdiction) in fact is a market leader and is the right firm for the job.

Thus, the SGLA offers Chinese companies an unparalleled network within China and abroad through which we provide seamless services at an international standard but retain a local touch.

For more information on how the SGLA and the Lovells' global network can assist your company's business outside of China, please contact us at contact@sglalaw.com. For more information on the capabilities and experience of Lovells in various jurisdictions, please click on the Member Firms tab above and select Lovells, or click on the appropriate region in the side bar to the left.