Interview with Dacheng Attorney Published Full-Page on International Business Daily

On August 15, 2013, International Business Daily published a full-page interview with Xu Yongqian, Dacheng senior partner and vice-chairman of Dacheng management committee. In the interview, Xu elaborated on the necessity for Chinese enterprises to build an integrated legal risk management system on a global basis with local firms serving as initiators and coordinators, in an effort to help Chinese enterprises go out with little or zero legal risks.
 
Xu said, although in recent years, Chinese enterprises had quickened their pace in going out, they had done little to control legal risks on foreign lands. Compared with top-tier international enterprises, there was large room for improvement regarding institutional mechanism building and management. In his opinion, Chinese enterprises should special attention to the compliance of both Chinese laws and foreign laws and take a holistic view on legal risk prevention in and outside China. In particular, the mechanism of legal risk prevention should expand to include overseas markets.
 
Attorney Xu introduced Dacheng’s experience in helping Chinese enterprises build legal risk management mechanism. He said it was urgent under current circumstances to cultivate local firms capable of delivering international legal counsel and let them represent accounting agencies, investment banks and legal agencies to bolster Chinese enterprises’ going out. Chinese local firms had an advantage over foreign counterparts in that they could control clients’ amount of information disclosure so as to prevent foreign institutions from knowing Chinese enterprises’ business plans and safeguard national economic security. This was especially true for enterprises of key industries and sectors which serve the lifeblood of the national economy as well as key high-tech enterprises. Chinese local firms were also in a better position to maintain compliance with Chinese laws and foreign laws, guarantee the delivery of quality service and help boost the work efficiency of in-house counsels.