The opening ceremony of GLA Forum of “Qianhai·Chinese Enterprises Investing Overseas” was successfully held GLA boosts the overseas investment of enterprises under the One Belt & One Road Initiative
The opening ceremony of GLA Forum of “Qianhai·Chinese Enterprises Investing Overseas” was successfully held
GLA boosts the overseas investment of enterprises under the One Belt & One Road Initiative
Wanda Group suffered many setbacks in its investment in Spain. And Chinese high-speed railway projects was also thwarted even after the bidding and bid process. When the enterprises invest overseas under the One Belt & One Road Initiative, how to avoid the legal trap and risk, became the focus of the GLA forum.
The GLA Forum of “QianhaiChinese Enterprises Investing Overseas” was successfully held in Futian Shangri-La hotel, Shenzhen on December 7th, 2016. The forum was jointly sponsored by GLA(Global Legal Alliance), Zhonglun W&D Law Firm, P. C. Woo & Zhonglun W.D. LLP, Shenzhen Evening News and Times Entrepreneur.
Zhonglun W&D Law Firm is ranked 10thof the ALB Asia’s top 50 largest law firms this year. P. C. Woo & Co. is the earliest-founded and currently largest and prestigious Chinese law firm in Hong Kong.
The Forum was hosted by P. C. Woo & Zhonglun W.D. LLP’s director Cheng Haiqun and the lawyers of P. C. Woo & Zhonglun W.D. LLP—Wang Lingru and Zhou Lisi. The representatives of Shenzhen government and Qianhai Administrative Bureau, the co-chairman and vice chairman of GLA, the partners from USA, UK, Singapore, South Korea, the Netherlands, India, Australia and Hong Kong,the member of the Council of the SCIA and over 50 Chinese and overseas enterprises attended the forum.
The GLA forum focused on Qianhai, Shenzhen with the main theme of “QianhaiChinese Enterprises Investing Overseas”.
The One Belt & One Road Initiative is the carrier and framework of the Chinese global strategy in the new era. Shenzhen is the forefront of Chinese reform and opening up and Qianhai is the pilot region of the One Belt & One Road Initiative and the only approved demonstration area of the legal system with Chinese characteristics. As shown in the survey by NBS survey office in Shenzhen,75.29% enterprises think most highly of the fair and just legal environment in investing in Qianhai.
In such background, the four parts including the cross-border investment, family wealth management, the progress of Qianhai arbitration reform and cross-border finance were warmly and deeply discussed by the guests in the forum.
The cross-border investment is the main form of the Chinese enterprises going global and the key unit of the forum.
The partner of DKLM Law Firm--Jeremy Kleinfeld gave an introduction to UK investment for Chinese enterprises. The index of economic indicators of 2016, the retail industry, investment industry, office, industry systems, residential industry were illustrated in his introduction with the emphasis of great potential of UK investment in real estate and some issues related to investment immigrations. He pointed out that China and UK had conducted deep cooperation in infrastructure, clean energy and real estate these years. And British enterprises looked forward to the further cooperation under the One Belt & One Road Initiative.
The foreign legal consultant of One Law Partners, LLC—Seong Soo Kim gave a speech of “Foreign investment in South Korea” on the economy of South Korea. And he focused on the features and incentives in the foreign investment promotion act(FIPA) and other aspects such as the labor, foreign exchange, taxation, foreign land acquisition, intellectual property rights, special zones and dispute resolution.
The large population and vast market make India the destination of many Chinese enterprises investing overseas and setting up factories. With regard to the topic“how to invest in India”, Anupam Dighe, the partner of India Law Alliance, started his presentation from the point of the entry options with the analysis of different investment models, valuation norms for investment and setting up business in India. And he stressed the cheap labor, lower cost of land, the convenience for investment and the high profits in India.
The Netherlands has been the second largest trade partner of China for 11 years. And it is only second to Germany among the EU countries. As the homeland of tulips and the gate of Europe, it is vital for the economic and political relations between China and Europe to invest in the Netherlands of Chinese enterprises. The founding partner of Schelstraete Business Lawyers -- Luc Schelstraete introduced the functions of NFIA(Netherlands Foreign Investment Agency),the convenient conditions, the advantages of investing in the Netherlands and the taxation.
Data shows that 70% of family wealth can not pass to the second generation and 90% of which can not pass to the third, while family wealth trust, an effective way to resolve the family inheritance crisis, is receiving more attentions and even preference from the affluent class in China. Therefore, Li Wenxiu, the executive director and general manager of Singapore bank, with ''family trust and wealth management" as its speech title, introduced the respect of family financial management in Singapore and the huge space for the rich and family enterprises to achieve the implement of wealth inheritance in China.
Qianhai not only opens to the world in the economy, but also conducts the massive reform in judicial area. Arbitration is the widely applied form in international dispute. Qianhai has made much progress in the international arbitration through unremitting efforts. Peter Malanczuk--the member of the Council of the SCIA, the Adjunct Professor of the Faculty of Law of The University of Hong Kong (HKU) and the member of the Academic Advisory Council of the University of Heidelberg, the former Dean and Chair Professor of the School of Law of City University of Hong Kong, introduced “the recent development of Qianhai International Arbitration. Qianhai Court of International Arbitration is accelerating its internationalization with one third of its members being from abroad. And it respects the client’s will of the application of law and procedure, boosting the confidence of the overseas enterprises to Shenzhen’s legal system by its high-level openness and internationalization.
With the increasing of the trials of settling cross-border trade accounts in RMB, the innovation of cross-border RMB business is advanced deeply.Cross-border financing is of vital importance for the enterprises avoiding the exchange risk, the development of new industry and the improvement of and foreign trade service and openness. Paul L.K.Lo.,the deputy secretary general of GLA and the partner of P.C. Woo.& Co., mentioned that Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone can conduct the cross-border direct loan on the basis of overseas loan under domestic guarantee and domestic loan under overseas loan while the multi-national enterprises can also conduct the RMB cash transfer and concentration between the non-financial enterprises.
Discussions over the issues concerned by the attendees and the legal professionals were heatedly held. They also shared many popular and potential business and investment chances.
Since the world financial crisis mounted in 2008, China has been facing challenges in economic restructure and overcapacity. Thus China put forward the One Belt & One Road Initiative to stimulate the development of surrounding areas, export overcapacity and implement the supply-side reform, therefore to inversely promote domestic reforms in various fields and hold the initiative in the economic cooperation with foreign countries.
The One Belt & One Road Initiative is an opportunity for economy as well as law firms (legal industry). The law enforcement bases on economic activities and economic activities rely on the law enforcement. It is sure that as the in-depth advancing of China’s opening and reform, our law faculty will turn passive “follow up” into positive “accompany” and finally play a leading role during the enterprises’ “going out” process thus making the rule of law work better on advancing the One Belt & One Road initiative.
Since the market-oriented reform in the law firms in China, Chinese lawyers and law firms are limited to join the legal alliance dominated by British and American countries. But GLA (Global Legal Alliance) founded on May 19th 2016 is the first one sponsored, founded and dominated by Chinese lawyers. GLA is jointly sponsored by P.C. Woo.& Co. and Zhonglun W&D Law Firm and headquartered in Hong Kong and Beijing. Moses M.C. Cheng is the first Chairman of GLA. He was the Senior Partner of P.C. Woo.& Co. from 1994 to 2015. He is also the member of National Committee of the Chinese People’s Political Consultative Conference and the chairman of Insurance Authority. And he was presented the Great Bauhinia Medal in 2016. Chen Wen is the co-chairman of GLA and the founding partner of Zhonglun W&D Law Firm. GLA can not only provide a platform of exchange and cooperation for the legal service providers in the world, its annual forum can also enable Chinese enterprises to find business and investment opportunities globally.
Based on GLA, GLA forum was held by 11 law firms from China, US, UK, Netherland, Italy, Saudi Arabia and Cyprus and well-known legal service institutions. It is a high-level legal and economic forum, sticking to the principle of being open and international. The distinguished guests from reputed law firms and different countries, enterprises and governmental officials were invited to discuss the hot issues of the year. The attendees exchanged their views on the law, taxation, financing and policy, which fostered their friendship and fully displayed the spirit of “reforming ,moving forward and developing vigorously”.