Event Report: SIPAC’s “Global Compliance Management Master Class” Equips Chinese Enterprises for International Expansion

A specialized compliance training seminar officially titled “Global Compliance Management Master Class” was recently held in Hangzhou to address the complex regulatory challenges faced by Chinese companies expanding internationally. The event, hosted by SIPAC, aimed to provide robust support for Chinese enterprises venturing overseas by offering in-depth insights into global compliance trends.

Event Overview

The three-day Global Compliance Management Master Class took place from July 19-21, 2024, in Hangzhou. International compliance experts from the US, UK, Japan, India, and Russia delivered on-site lectures, offering a multi-national perspective on the global situation. This approach helped participating companies broaden their viewpoints and gain a comprehensive understanding of the international compliance landscape.

Training Highlights

The seminar featured a rich curriculum that delved into the latest international compliance regulations and landmark cases, uncovering their underlying objectives. This holistic approach enabled Chinese companies to examine and address compliance challenges from a global perspective. Experts shared advanced compliance management practices from their respective countries and offered practical solutions to specific issues Chinese enterprises might encounter when expanding globally.

Key topics covered included export controls and sanctions, the Japan-Netherlands tech alliance, AI regulation in the US, EU, and China, internal compliance investigations, anti-bribery measures, white-collar criminal liability, and data privacy compliance. Renowned experts in each field provided comprehensive analyses, addressing background, current status, challenges, and potential breakthroughs.

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Britt Mosman, partner at Willkie Farr & Gallagher LLP, discussed the TikTok divestiture bill, other US federal restrictions targeting China, and their potential impact on Chinese companies. The presentation also covered the US Biosecure Act, key issues in CFIUS reviews, and emerging trends in state-level restrictions on Chinese investments.

Derrick Zhao, partner at Fangda Partners, responded to Britt’s insights and facilitated a discussion on Chinese and American perspectives. Zhao introduced corporate sanctions and export control compliance systems to attendees, highlighting the quietly advancing 3.0 version of US export control standards and the impact of US-EU sanctions against Russia on Chinese companies.

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Akira Moriwaki, partner at Anderson Mori & Tomotsune, provided a detailed overview of Japan’s export control regime. Drawing from years of experience, Moriwaki offered a comprehensive guide on export control lists, regulatory interpretations, general rules, special considerations, and operational procedures for companies investing in Japan.

Bill Stellmach, partner at Willkie Farr & Gallagher LLP, addressed AI regulation in the context of international sanctions, comparing various US state laws and contrasting Chinese, American, and European approaches. He also discussed how different US election outcomes could influence international AI regulation. YANG Jianyuan from Haiwen & Partners responded to Bill’s presentation and offered new perspectives on building AI compliance frameworks, challenges for Chinese companies expanding overseas, and lessons from notable cases.

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The seminar then shifted focus to another major challenge for Chinese companies going global: transaction risk control, due diligence, and anti-bribery and corruption risk management. This segment featured presentations from Michael Hickman and Carmen Liu, Principals at Control Risks; Michael O’Kane, senior partner at Peters & Peters; and Benjamin Yin, partner at JunHe LLP.

Michael Hickman and Carmen shared methods for assessing transaction counterparty risks, emphasizing how efficient risk analysis can significantly enhance transaction quality. They also discussed reputational risk analysis and due diligence, political risk analysis, the importance of digital risk management, and Control Risks’ unique risk management system and investigation methods.

Michael O’Kane focused on key aspects of the UK Bribery Act 2010, including its scope, elements of active and passive bribery, criteria for bribing foreign public officials, circumstances under which companies bear criminal liability for bribery, and strategies to mitigate risks under the Act. Benjamin introduced types of white-collar crimes under Chinese law, analyzed the criminal liabilities and risk control measures for directors, supervisors, and senior management, and provided guidance on cooperating with administrative and judicial investigations.

CHEN Jihong, partner at Zhong Lun, addressed data privacy compliance challenges in the context of global expansion. Jihong interpreted the growing types of data compliance challenges and the current state of corporate data compliance under China’s regulatory framework, comparing legislative and regulatory focuses across major jurisdictions. He concluded by offering suggestions for developing high-quality cross-border data compliance processes.

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The final session featured presentations from Indian and Russian lawyers on their respective countries’ investment environments and legal regulations. Atul Pandey and Mayank Jain, partners at Khaitan & Co, analyzed India’s foreign investment volume, key industry distribution, foreign investment policies and laws, and provided specific advice for Chinese investors, particularly regarding M&A projects and tax issues.

Maxim Alekseyev, founding partner of ALRUD Law Firm, introduced Russia’s investment climate and the sanctions challenges faced by Chinese companies, offering in-depth analysis of labor and employment issues and enterprise management risks.

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Interactive Discussions

Throughout the training, corporate representatives engaged in in-depth discussions with experts through Q&A sessions and case analyses. This interactive approach significantly enhanced the training’s effectiveness, allowing participants to gain practical assistance and experience in developing effective compliance strategies and addressing overseas market risks.

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Attendee Testimonials

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Empowering High-Quality Global Expansion

The successful conclusion of this compliance training seminar not only provided valuable knowledge and experience to participating companies but also offered strong support and assurance for the high-quality global expansion of Chinese enterprises. As China continues to open up and global economic integration accelerates, Chinese companies’ overseas expansion has become an unstoppable trend. However, while enjoying the opportunities presented by foreign markets, Chinese enterprises must also face complex compliance challenges. This training seminar was designed to help companies better address these challenges and achieve compliant operations and stable development.

The Master Class attracted a distinguished roster of attendees, most of whom were senior legal professionals from leading Chinese companies and law firms. Notable firms and their representatives included:

• Allianz Life: Compliance Head
• BOKE Technology Group: Legal Manager
• Cainiao (Ali logistic spin-off): Senior Legal Expert, Head of Sanctions and Data Compliance; Legal Expert
• Chinaoil: Legal and Compliance Managers
• CHINT Group: Legal; International Legal; HR Legal
• CHUKONG Technologies: Legal Director
• Dreame Technology: Legal Director
• Genertec International: Legal
• Guangzhou Academy of Social Sciences: Associate Researcher
• Hailiang Group: Deputy Compliance Head
• Lenovo Group: Legal Director
• Shuanglong Group: Legal Director
• Sinochem Group: Deputy GM
• TCL Group: Deputy Compliance Director
• WuXi Biologics: CCO
• Xiamen R&T Plumbing Technology: Legal
• Zhejiang Corporate Counsel Association: Deputy Executive Director
• Zhejiang Securities: Director, Equity and Finance

Additionally, prominent law firms were well-represented, including:

• Beijing Bindao Law Firm: Associate
• Beijing Dongwei Law Firm: Senior Partner
• Brighteous Law Firm: Managing Partner; Partners
• Dacheng Law Offices: Senior Partner
• Duan & Duan Law Firm: Partner
• Haiwen & Partners: Partners
• Hong Kong Jinyang Foreign Legal Services Center: Partner
• Ins Law Firm: Associate
• JunZeJun Law Offices: Partners
• King & Wood Mallesons: Partner
• SGLA Law Office (Guangzhou): Managing Partner
• Zhejiang Zeda Law Firm: Managing Partner; Senior Partners; Partner
• Zhong Lun Law Firm: Partners

These participants underscored the event’s importance and relevance, highlighting the critical need for advanced compliance training as Chinese enterprises navigate the complexities of global markets.

Looking ahead, we anticipate more similar training events to provide comprehensive and professional support for Chinese companies expanding globally. We also aim to actively engage more enterprises in our activities, focusing on international compliance trends and improving the quality of overseas expansion, enabling Chinese companies to step onto the world stage with greater confidence and stability.g dialogue, exchanging best practices, and facilitating collaboration between industry leaders and legal professionals, SIPAC continues to pave the way for Chinese companies to thrive on the global stage while adhering to the highest standards of compliance.

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