Doing Business in China - Making the most of the free trade agreement

In this section:

› Tips on finding a good lawyer
› Where to from here?

Your legal advice must come from a lawyer who has excellent language skills and extensive experience working with foreign companies in China. This would almost certainly be a lawyer based in China, which has many good international and local Chinese law firms.

Only lawyers licensed in China can provide legal advice on Chinese law or appear in a Chinese court. International law firms working in China can only advise clients on legal matters related to the country where they are licensed, eg US law firms can advise on US law, and on general international business practices.

As a result most international law firms have formal or informal relationships with Chinese firms to deal with clients' affairs.

Although foreign lawyers can't provide legal opinions they can help clients structure transactions and draft contracts.

Chinese law firms tend to cost less than international firms. For example, an international law firm based in Hong Kong can cost US$800 an hour, while a Chinese law firm based in Beijing might cost US$280-$480 an hour.

Tips on finding a good lawyer

• make a shortlist of firms by using the internet or law journals (which often rank law firms), and check the firms' websites to get a feel for their size and expertise
• make an appointment to talk with the firm (the first consultation is usually free), and question them about issues important to your situation, using the answers to gauge how good they are
• alternatively, seek references from sources like New Zealand Trade and Enterprise or International Chambers of Commerce
• lawyers working in the biggest cities are likely to have more experience dealing with foreign businesses
• consider China-based lawyers or NZ law firms with strong China links. Lawyers working outside the country will find it difficult to keep pace with the rapid development of laws in China
• local Chinese law firms are catching up fast with international practice, making them an increasingly attractive alternative to international law firms.

(Source: Lu Qing, partner at Chinese law firm King & Wood)

Where to from here?

Know how to resolve commercial disputes efficiently.