At the 7th Lujiazui Law Forum, which concluded on Nov. 20, a signing ceremony was held for seven law firms in Shanghai to engage Hong Kong barristers as legal counsels, a first such initiative on the Chinese mainland. Both sides also pledged to further their mutual support and cooperation, and strengthen mutual exchange.
This year's Forum, co-sponsored by the Shanghai Bar Association, Hong Kong Bar Association, Shanghai International Economic and Trade Arbitration Commission, East China University of Political Science and Law and Shanghai Corporate Counsel Association, focused on the theme of “Legal Services for the Promotion of One Belt, One Road.” Zhao Dacheng, Vice Minister of the Ministry of Justice, Jiang Ping, Member of the Standing Committee of CPC Shanghai Committee and Secretary of the Commission for Political and Legal Affairs of CPC Shanghai Committee, and Zhou Hanmin, Standing Committee Member of Chinese People's Political Consultative Conference (CPPCC), Vice Chairman of China National Democratic Construction Association, and Vice Chairman of Shanghai Committee of CPPCC were among the guests present at the Forum, joined by more than 300 participants from the judiciary, business and academia.
Recent years have witnessed frequent exchanges between Mainland and Hong Kong lawyers in innovative and diversified forms. Llinks Law Offices and Han Kun Law Offices both established offices in Hong Kong last year to promote their international expansion, according to earlier ALB reports.
At the same time, some PRC law firms have taken advantage of free trade zones to strengthen their cooperation with Hong Kong lawyers. In May, AllBright Law Offices and Hong Kong’s Stevenson, Wong & Co. announced the establishment of an associated firm in the Shenzhen Qianhai Free Trade Zone to focus on cross-border legal services in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone.
The move by the Shanghai Bar Association to engage Hong Kong barristers as legal counsel was hailed by Winnie Tam, Chairman of the Hong Kong Bar Association as "a historic step taken by mainland lawyers and Hong Kong barristers." The seven Shanghai law firms on board are AllBright Law Offices, Llinks Law Offices, Co-Effort Law Firm LLP, Shenda Partners, Universe Law Firm, Wintell & Co. and Hansheng Law Firm.
David Yu, President of the Shanghai Bar Association, told reporters that the Ministry of Justice promulgated the Administrative Measures for Engaging Hong Kong Law Practitioners and Macao Practicing Lawyers as Legal Counsels by Mainland Law Firms in 2004 to implement the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macau Closer Economic Partnership Arrangement, and that this initiative was precisely for the purpose of actively implementing those measures.
According to Lawrence Zhu, Director of Law Commission of Pudong New Area and senior partner of AllBright Law Offices, the "One Belt, One Road" initiative not only requires enterprises to go global, but also poses new challenges for lawyers. He stressed that law firms needed to conduct research on the laws and judicial systems of the countries along the "One Belt, One Road" route and strengthen cooperation with the top law firms of these countries. “We hope that the number of such law firms will keep increasing in the future so that we can have more choices in selecting partners for cooperation.” added Zhu. "I think today we have embarked on the perfect first step".
Hong Kong has a common law system which divides its legal profession into barristers and solicitors. Barristers specialize in litigation and dispute resolution, and practice independently to ensure their professional independence. Since they are not required to assume the operating expenses of any law firm, barristers are more flexible with their rates.
Against the background of One Belt, One Road, going global has become a priority for mainland companies. Outbound investments will undoubtedly bring about business opportunities, but also make disputes unavoidable. Hong Kong has long been an ideal venue for arbitration. With their traditional common law training, Hong Kong barristers are not only familiar with Hong Kong's legal system but also have knowledge of the legal systems in other common law jurisdictions around the world. As such, the legal team consisting of Hong Kong barristers and mainland lawyers is expected to complement each other.
Founded in 1949, the Hong Kong Bar Association has 1,327 members, including 1,228 barristers and 99 Senior Counsels. Cooperation between the participating Shanghai law firms and Hong Kong barristers will be in two ways. One, mainland companies and lawyers may directly consult Hong Kong barristers for their advice on issues relating to Hong Kong laws, international commercial laws and the resolution of disputes overseas. Two, mainland law firms and Hong Kong barrister chambers will send each other practitioners to exchange information and knowhow.
The Ministry of Justice has attached high importance to the liberalization of legal services. So far, Hong Kong law firms have established 64 representative offices on the mainland, and eight Hong Kong law firms have formed alliances with their mainland counterparts.
