EU Tour – Legal & Competition Working Level Meeting
2016-01-26 | Beijing
Chairs of Beijing and Shanghai gave an overview of the recent developments regarding the legal services sector in China. The Chair of Shanghai WG focused on the Shanghai Free Trade Zone and the disappointment on only suggesting JV between foreign and local law firms. They also mentioned that in the revision of the investment catalogue a set backwards was given and now it has been formalised that it’s forbidden to advise on Chinese law. There is the feeling that China wants to avoid foreign lawyers doing too much noise.
The Ministry of Justice limits the activity in three ways: a) Chinese lawyers cannot appear in court as their licence is suspended, b) after US pressure, foreign law firms can be in meetings with Chinese authorities if a Chinese layer is in the room, and c) they can’t technically issue a legal opinion on Chinese law.
The EC officials were interested in learning more about the possibility of establishing JV in Shanghai Free Trade Zone. The Chairs mentioned that law firms are not really interested in this option and currently only one law firm has done it. The main benefit is if a law firm wants to do litigation.
The Chairs emphasized that the Working Group is not asking for immediate opening; but, as mentioned in the letter passed to Director Schlegelmilch, they would like mainly that an acceptable scope of activities was defined for foreign law firms to operate in China (i.e. Corporate Law). FilipDeraedt mentioned that some Member States also have restrictions in place for foreign legal services.
EC officials mentioned the EU-China Rule of Law Dialogue, but more aimed at dealing with human rights issues. It was also mentioned the Legal Affairs Dialogue which will be kick off on consumer affairs. This topic is less interesting for the EU, but it can contribute to start a dialogue with China.
Discussion on rule of law and transparency. Mentioned the guiding cases.