Like the Pearl River rushing into the sea, JT&N surges forward.
On May 15, the 2021 JT&N Greater Bay Area Legal Forum was grandly held in Guangzhou.
This forum, which lasted for a whole day, on the one hand, involved macro outlines, where senior partners from JT&N, experts and scholars gathered together to discuss about the increasing demand and challenges for high-end legal services in the Greater Bay Area; on the other hand, it also touched upon micro analysis, where the attorneys and outstanding representatives of the senior executives in enterprises discussed about the thinking and layout ahead of the times of professional services in the risk control and compliance of state-owned enterprises, and the innovative development of intelligent manufacturing.
Seen from the list of participants, this forum is an important platform, which was co-hosted by the Greater Bay Area and the Free Trade Zone Legal Business Committee, the State-owned Assets Legal Committee , and the Securities Legal Committee of Guangzhou Lawyers Association , and co-organized by Wolters Kluwer, WeLegal, Senior Legal Think Tank and China Academy of Chief Legal Officer .
This is not only the strategic development of JT&N, but also the high hopes given by the local lawyers association. Mr. Shengfang XIAO, president of Guangdong Lawyers Association, Mr. Tao LIU, vice president of Guangdong Lawyers Association, Mr. Jianbin CHEN, vice president of Guangzhou Lawyers Association, and Mr. Zhijun WANG, vice president of the Ninth Guangzhou Lawyers Association, attending the forum all spoke highly of and fully affirmed the holding of the forum and the topics thereof.
Focus on the Upgrading of the Legal Services in the Greater Bay Area
The main forum in the morning was co-chaired by Mrs Yunyan ZHANG and Mr. Yinhong LIU, senior partners of JT&N.
“An important feature of the Guangdong-Hong Kong-Macao Greater Bay Area is ‘one country, two systems, three jurisdictions, three tariffs, and three currencies’ that we are very familiar with, which are absent as compared with the Tokyo Bay Area, New York Bay Area, and San Francisco Bay Area that all implement a single law, a single currency, and a single tariff.” professor Heng LIU, director of the Public Law Research Center of Sun Yat-Sen University , said lightly on the forum, which illustrates the mountain-like difficulties faced by the legal services in the Greater Bay Area. “The capacities for foreign-related legal services will be the core competitiveness of law firms in the future.”
However, these are not impossible for the attorneys in JT&N.
“To establish and improve the coordination mechanism among the three places in the Guangdong-Hong Kong-Macao Greater Bay Area, what we must achieve is not only the ‘hard connectivity’ of the facilities, but also the “soft connectivity’ of the mechanism.” said Fang FANG, deputy to the National People’s Congress and senior partner of JT&N, who then began to answer this difficult question and put forward specific suggestions in areas such as the protection for intellectual property rights and investor rights, and the construction of legal service cluster regions.
The attorneys from JT&N are such a group of innovators and pioneers who are sincere and are not bounded by concepts and traditions.
“The trade in goods that is common in WTO cases includes intellectual property rights, trade in services, agricultural measures, and health inspection and quarantine, which involves more factors than traditional international trade and trade in goods. Several cases regarding trade in services are milestone cases, even among the own cases of the WTO.”
Mr. Jun PENG spoke with a vehement and excited tone on stage, explaining the heavyweight cases in plain language one by one. He was the first Chinese attorney to appear in the hearings for resolving WTO disputes and make defense, and has acted for the Chinese government to participate in dozens of WTO dispute resolution cases; moreover, he also assisted the Chinese government in negotiating the investment treaties with the European Union and other countries.
As an outstanding representative of the commercial law firms in China, JT&N is not only good at thinking, but also agile at action. Last year, JT&N established the Guangzhou Office and continued to promote the establishment of in Hong Kong Joint Branch, so as to form a regional legal service matrix featured by “three-place linkage” with the Shenzhen Office. What’s more worth mentioning is that JT&N launched the JT&N Research Institute at the forum to study new issues and develop new solutions on a continuous basis to provide the “JT&N Solutions” to commercial legal services in the Greater Bay Area.
1. Discussions on the Risk Control and Compliance in State-Owned Enterprises
The “three jurisdictions” is also a big challenge to the capabilities for comprehensive legal services. The strategy of the attorneys from JT&N to continue to carry forward the spirit of “integrating into the industry”, that is, to know business better than entrepreneurs, know technology better than technicians, and master the “translation” between different languages.
“It is not that simple to just integrate Database A and Database B. The fields of the databases to be integrated are different, how to unify these fields? How to allocate profits between regions? How to process the data? How to realize the integration function of the database? These are all problems.” said attorney Kai PENG, who is more like a technical expert when explaining the Information Security in the Digital Transformation of State-owned Enterprises and the Corresponding Response.
“Therefore, we consider using notarization and inspection methods to extract evidence and prepare the relevant environment to make preparation for the verification by the public security agencies while solving the authenticity and relevance.” Mr. Decheng LI mentioned in his lecture on Legal Protection of the Core Technology Secrets of State-owned Enterprise and the Corresponding Risk Prevention , which is more like a practical class, detailed and important.
“What is the so-called ‘One Enterprise, One Policy’? Now, we are building an economic module for central enterprises, and our attorneys are involved from the initial project approval of an investment project, to its feasibility study, market and industry analysis, and then to the final accountability. Moreover, at each step, it is required to give a clear score for consideration, so that accountability can be held once there were any problems in the future.” Mr. Ying ZHENG stated, who is more like a “guardian” when explaining the difficulties in the corporate governance structure of state-owned listed enterprises.
Ke JIN, managing partner of the Innovation Department of Deloitte China , said that “Data assets may be the core value of an enterprise in the future” when explaining the value of data.
The state-owned enterprise reform of Guangdong Province, one of the first provinces to carry out the reform of state-owned enterprises, has ranked among the top in China in terms of the marketization level and the asset securitization rate, with the state-owned assets of Guangdong amounting to nearly CNY 20 trillion. Just before the forum, the State-owned Assets Supervision and Administration Commission of the State Council has comprehensively promoted the compliance management of central enterprises in recent years, pushing for the coverage of compliance requirements in various business fields, functional departments, subsidiaries at all levels and all employees of central enterprises. At present, all central enterprises have established compliance committees.
As a representative of state-owned enterprises, Jingwen QIU, general manager of the Legal Department of Yuexiu Property , also elaborated on the conceptual changes: “Our attitude towards risk has gone through the process from risk aversion to facing it, and now we pay more attention to the identification and response of risks.”
Chenhang YAO, managing director of Kunpeng Capital, emphasized the important value of compliance with a case: “Corporate governance is still a compliance issue. In the past few years, we have seen that many sequelae of mergers and acquisitions are actually the failure in corporate governance and compliance review.”
Zhiwei SHI, vice president of Senior Legal Think Tank, also put forward a similar initiative to that of the attorneys of JT&N: “For the digitalization of compliance management, we must appropriately change the mindset of legal professionals paying attention to details and qualitative analysis, and also make the current layout for the digitalization of compliance management from the perspective of the future.”
“Seen from the perspective of an enterprise’s own development, compliance is revenue generation”. This remark from Mr. Zheng YU reveals the “heart-struck pains” of many enterprises.
“There have been ‘two changes’ in corporate compliance: the change from policy-oriented to the risk-oriented compliance, and the change from general and comprehensive compliance to specific compliance”, summarized by Mr. Jun PENG in terms of the changing trends in compliance management.
Analysis of the Legal Hotspots for Intelligent Manufacturing
If state-owned enterprises are the cornerstone of the national economy, then intelligent manufacturing can be said to be the vanguard of the national economy. As a vanguard, intelligent manufacturing must have a sharp weapon, i.e. innovation. Nevertheless, the legal guidance is indispensable with respect to how to use this weapon.
“Under the current registration-based IPO review rules with comprehensive information disclosure as the core, intelligent manufacturing enterprises must make planning as early as possible and also property deal with the key issues such as: the equity (option) incentives and structural arrangements; the right confirmation, protection and further development of the core technologies; sorting and regulation of the situation of horizontal competition; legal and compliant operation, and government supervision.” said Mr. Yinhong LIU when explaining the Analysis of IPO Review Hotspots in the Intelligent Manufacturing Industry , who combined the IPO-related review points with the characteristics of the business development practice of intelligent manufacturing companies to clearly unfold such hotspots one by one, making him quite like a consultant for corporate development strategies.
“In-house legal personnel should make sharing with the management in respect of compliance management, embed compliance in business aspects and form process management.” stated Zhaohui FU, who put forward a series of profound insights when analyzing the Compliance Challenges in the Era of Intelligent Manufacturing.
“A company that does not want to be a platform is not a good company, and platform competition is unstoppable. Antitrust compliance should not just be a slogan, but a habit of the company...” Mr. Guodong ZHANG spoke like an entrepreneur with extraordinary bearing.
Mr. Yunyan ZHANG expressed her own insights completely from the perspective of enterprises, and said that “For attorneys to serve the intelligent manufacturing companies, apart from the professional capacities and the business thinking, they are also required to take factors in all aspects into account, such as policies, the market and the future”.
This forum well demonstrates the strength of JT&N in cross-border services and comprehensive commercial services, and also shows the concern of JT&N for the economy of the Greater Bay Area: the digital transformation of state-owned enterprises and the development of the intelligent manufacturing industry. These attorneys are representatives of JT&N’s “integration into the industry”, which in turn has accumulated a more systematic way of thinking, more comprehensive service capabilities, and more practical solutions for the JT&N in commercial services, allowing it to form remarkable comprehensive service capabilities.
In this way, JT&N discussed together with peers, experts and scholars, and corporate executives, formed a circle consisting of academic researchers, legal service providers, and corporate managers on the forum, among whom there are questioners, answerers, “designers”, as well as “engineers”, and the common goal of whom is to identify the direction of the trend to provide a navigation map for the steady development of the economy in the Greater Bay Area, and work together towards the future.