中国中部地区包含六个省份，联通南北、承启东西的特殊区位不但使这里拥有稠密人口，也将其孕育为中国的经济重镇。这份报告聚焦于中部湖南、湖北、河南、安徽四省，近距离观察这里的产业及法律服务行业发展。
2021年伊始，中国政府就为中部地区发展送上一份“大礼”。3月30日，习近平主持召开政治局会议，审议《关于新时代推动中部地区高质量发展的指导意见》，这份为中部地区崛起量身定制的文件，为该地区在十四五期间的发展进一步指明了方向。
“中部地区承东启西、连南接北，资源丰富，交通发达，产业基础较好，文化底蕴深厚，发展潜力很大，推动中部地区高质量发展具有全局性意义。”《意见》指出。它同时提出中部地区在中国扮演的四个关键角色，即：粮食生产基地、能源原材料基地、装备制造及高技术产业基地，和综合交通运输枢纽。
中部地区常住人口超过全国总人口的1/4，依靠人口和区位红利，过去几年“中部崛起”的势头也愈发明显。以2020年为例，中部实现地区生产总值占全国GDP总量的21.9%，且过去五年年均GDP增长为6.4%，在全国各大板块中位居前列。
创新是中部经济发展不可忽视的关键词。《意见》特别指出，“要把创新作为引领发展的第一动力，以科技创新引领产业发展”。数据显示，2021年一季度，中部六省高技术制造业或高新技术产业增加值全部实现20%以上增长，“集成电路、智能制造等战略性新兴产业快速成长，量子通信、动态存储芯片等原创成果竞相涌现”。
谈到中部未来发展，《法制日报》评论员秦平指出，中部需要“找准定位，发挥优势，不断融入新发展格局”。
的确，中部地区四通八达，但长久以来的农业和重工产业身份使其发展缺乏亮点。未来，中部各省将各自承担不同角色：安徽深入融入长三角一体化发展；湖南全面推进粤港澳大湾区建设；湖北和河南则将分别依托长江及中欧班列，构筑“一带一路”重要节点。
新产能，新服务
实现高质量发展，产业转型是关键。中国在十四五规划中提出建立区域科技创新中心，其中就包括在合肥、武汉和长沙的相关规划。作为后起之秀，未来中部城市将以科研“捆绑”生产，以期快速实现新产能发展。
这样的努力已经呈现出不少亮点。数据显示，过去几年河南科技型中小企业突破1万家；安徽工业机器人增长96%；湖北3D打印设备增长25.6倍；湖南集成电路产业规模则增长2倍。在中国市值500强上市公司中，中部占了31家，其中不乏科大讯飞、国轩高科、爱尔眼科、芒果超媒等新板块明星企业。
作为敏锐感知当地经济脉搏的服务从业者，律师们也观察到了中部的种种变化，以及这些变化对法律服务产生的影响。
“河南以郑州为中心，现在围绕‘五区四路’发展……实现从技术、产业到模式的全面创新。”
- 李煦燕，大成郑州
大成律师事务所郑州办公室主任李煦燕律师在河南执业已超过30年。“河南原本是农业大省，这些年经济发展呈现良性态势。”她介绍说，“河南以郑州为中心，现在围绕‘五区四路’发展，即航空港综合试验区、自由贸易试验区、郑洛新国家自主创新示范区、跨境电子商务综合试验区、国家大数据河南综合实验区，以及空中、陆上、网上、海上丝绸之路，实现从技术、产业到模式的全面创新。”
李律师观察到，在河南，制造业在转型，数据、人工智能等新产业也在发展，都要求律师具有更多知识储备和更高专业性。除了够专业，律所还要能够整合资源。“新业态的知识点、专业点、技术点很多，如果服务很分散，也没法满足客户需求。律所要能够一站式解决问题。”她说。
2011年，大成律师事务所合肥办公室主任纪敏律师从北京返回合肥创业，十年中，她见证了“伴随经济创新，律师业务在细分领域的蓬勃爆发”。
纪律师举了几个例子。例如在金融领域，“合肥正在打造金融总部基地”，伴随金融监管加强和金融机构产品创新压力增大，房地产信托投资基金（REITs）、区块链等新产品都出现在了合肥，当地金融机构开始“需要更专业的律师，甚至高度是超过它（客户）的，能够和金融监管机构对接，同步还有国际视野”。
投资领域的创新挑战也不小。合肥政府被称为最好的“政府投行”，过去十余年中透过投资、招商引资等方式将诸多新产业吸引到合肥落地，而且每次都押对了赛道。而新产业对律师专业性的要求极高。
纪律师说，前一阵在协助某个集成电路交易时，她发现“对产业不了解，连销售合同都没法审。这个销售合同就很特殊，买方在采购产品的同时也对卖方进行投资，产品价格和股权价格糅合在一起。怎么去安排商业结构，能够让双方既实现商业目的，又规避风险？”
中部另一座走出了自身产业特色的城市则是湖南长沙。
“湖南曾是制造业大省……腾讯、58同城、快手等新型互联网企业已经落户长沙，软件、传媒娱乐等产业也在快速发展。”
- 毛英，毛雄，大成长沙
“湖南是制造业大省，新兴产业逐步从一线城市转移到类似长沙这样的二线城市也是最近几年的事，腾讯、58同城、快手等新型互联网企业已经落户长沙，软件、传媒娱乐等产业也在快速发展。”大成律师事务所长沙办公室主任毛英、执行主任毛雄律师告诉ALB。
在他们看来，和新产业同时到来的是大合规服务需求的增长。“这类业务综合性较强，需要律所提前做准备。我们最近就联合大成合规法律服务中心在湖南举办论坛，和本地企业探讨经营管理中的合规问题。我们在这个领域已经比较快地做了研究和市场推广。”毛英律师说。
同样的变化也发生在湖北武汉。
“武汉九省通衢，传统产业链条比较完善，经济基础比较好。过去一些传统行业，比如钢铁、纺织、烟草，有举足轻重的地位。”大成律师事务所武汉办公室高级合伙人罗长德律师告诉ALB，“这几年则转变为光电子、汽车、石化，特别在东湖高新区和经济开发区，生物医药、高端装备制造、航空航天等产业都有布局。”
罗律师说，因为大成武汉办公室的“合伙人比较年轻，愿意接受新事物”，因此在知识产权、医药健康、游戏等领域，武汉办公室过去几年都经历了快速增长。
“机会蛮多，挑战也比较多，关键在于能不能抓住这次转型的机会，对前沿领域有所关注。”
- 罗长德，大成武汉
在罗律师看来，正是经济发展“裹挟”着法律服务发展，最终带来了中部法律板块的日渐成熟。“过去我们的法律服务市场还是比较传统，产品单一，高附加值业务水平也有待提高。但这几年随着新兴业务领域发展，法律服务市场也日渐成熟。机会蛮多，挑战也比较多，关键在于能不能抓住这次转型的机会，对前沿领域有所关注。”他坦言。
外联
产业转型外，中部地区的机遇还蕴藏在空间区位中。位于中国核心位置的中部是重要的交通枢纽，而在“一带一路”的大背景下，未来中部不仅要连接中国，更要连网世界，打造开放型经济。
以河南为例，“河南最重要的地位就是交通枢纽”，李煦燕律师告诉ALB，“最早是京广、陇海两条铁路在郑州交汇，现在郑州是米字型高铁的中心。郑州航空港的客货吞吐量也是中部地区的双第一；另外还有中欧班列从郑州始发，目前已经辐射30多个国家，130多个城市。海关机构目前在河南实现全覆盖，累计进出口额度在中部地区是首位，达2000多万亿”。
当然，伴随交通网流通的不仅有货物，还有投资。中部律师发现自己越来越多参与到了中国企业走出去，以及海外企业对华投资的交易之中。
在中企走出去方面，纪敏律师告诉ALB，大成合肥已经在协助安徽本土企业阳光电源、合肥华泰集团等出海中积累了不少经验，能够有效帮助本土企业和境外律师进行沟通。
而协助海外企业落地安徽，对本土律师的挑战更大。纪律师观察到，这类企业的需求首先集中于知识产权领域，因为“合肥规定，要拥有某类专利30件以上，才能申报高新技术企业，享受支持政策”。最近帮助某家韩国企业落地时她就遭遇了专利跨国认证的问题，“是个特别崭新的领域”，她说，“知识产权过去在安徽是个冷得不能再冷的灶，可谁给它烧热乎了，谁就是安徽第一人”。
此外还有合规和文化冲突的问题。“部分海外企业在本土拥有完善的合规标准，但这个标准拿到安徽是无法落地的，就需要和对方的法律部及董事会进行沟通。”纪律师说，“最近这个点在业务中频繁出现，我们投入的时间精力也比较多。”
在中国，某些机会可能尚未显现，但一旦爆发便势如破竹，“机会总属于有准备的人”，律师们对此也很清楚，大成武汉便是如此。
“目前武汉企业走出去的不太多。在服务外资方面，武汉办公室比较多集中在汽车、医药等行业，接触较多的是知识产权和劳务服务。”罗长德律师坦言。
但改变可能很快会发生，“前几年涉外业务在中部地区不多，这几年，武汉设立了自贸区，台商区、中法新城、光谷、星谷、中央新城也发展得如火如荼，在国际化方面获得了很大机会。大成武汉本身的专业领域就包括国际贸易、外商投资、外资并购、境外投资等，下一步我们要提高服务能力，与国外伙伴密切合作，掌握国外法律新动向，在反垄断调查、知识产权、美国长臂管辖等领域多做功课。”他说。
对此，李煦燕律师也有很多思考。伴随中部和河南开放程度越来越高，她形容现在的状态是“平台已经建得很好，环境也恰逢其时，但是如何把作用发挥得更好”？“大成现在是全球法律服务网络，对于中国企业走出去、境外企业和河南发生交易，我们应该能够很好地去承接，但目前还没做到理想状态……现在我们已经搭建了团队，储备了人才，未来会通过大成全球律所的案件转介系统和律师协会的国际业务部门，不断去做互动。”
内通
当然，在未来的双循环背景下，不仅外联蕴藏机遇，内通也会不断带来新增长，这点对于独占区位优势的中部地区尤为重要。
纪敏律师对此感受很深刻：“现在安徽的企业不光是走出国门，也到山东、内蒙古去进行投资，例如我们有些车企被其他省市招商引资过去，也需要律师协助谈判，争取更多政策支持。”
中部积极实现内通的另一个绝佳示例，则是长沙。
如上文所说，位处中部地区最南端的湖南未来将“全面推进粤港澳大湾区建设”，毛英律师告诉ALB，“其实湖南对接广东不是个新概念。湖南向来是广东产业转移的重要承接地，也有人开玩笑说，在深圳工作的差不多有一半是湖南人。大成长沙和深圳、广州办公室的互动非常多”。
毛雄律师则补充道，“长沙对于大湾区的发展完全是拥抱态度”，和大湾区律所间的积极互动也给大成长沙带来不少机会。他举了两个例子，一个是“深圳是中国最早开始城市更新的地方，中国最早一批做城市更新项目的律师都在广州。长沙市政府4月份发出任务，未来要大力开展城市更新项目，政府下属企业马上找到我们，因为知道大成在广深的城市更新项目里有很多业绩”。
另一个例子则发生在刑事领域。“广州沿海走私类案件比较多，未来长沙的三个自贸区，特别在设有海关的地域，也会爆发出大量走私案件，业务机会是巨大的。自贸区设立前，长沙本地很少有专做走私案件的律师，通过专业网络和专业人员，大成的核心优势就显现出来。所以我们采取积极态度拥抱大湾区，去学习专业技术，共建共享网络资源。”毛雄律师说。
除了联通外省，长沙也在积极拓展城市圈建设。6月初，湖南省印发《长株潭一体化发展五年行动计划（2021-2025年）》，未来长沙、株洲、湘潭三市要实现融城发展，到2025年地区生产总值达到2.5万亿元以上（北京2020年为3.6万亿元——编著），年均增长7%以上。
毛雄律师告诉ALB，长株潭一体化融城也并非新概念，但近期的快速推进也让律师们看到了新的业务机遇。“4月底三市签署了《长株潭知识产权资源共享共建合作协议》，未来长株潭规划打造机械制造、航空、轨道交通三个世界级产业集群，同时提升相关领域知识产权的影响”，将为知产律师带来更多机会。
其他机遇，还包括湘江新区打造成为长株潭金融中心所伴随的资本市场业务发展；一体化融城中基础设施建设，以及5G等新基建项目带来的业务；以及未来律师在跨区域公共法律服务平台搭建中所能够扮演的积极角色。
市场经历剧变
在诸多机会面前，中部地区的法律服务市场准备如何？
从律师人数看，虽然中部法律市场在全国版图中存在感还不算强，但当地律师数量已很可观。据不完全统计，河南律师人数最多，达2.7万人；湖北、安徽紧随其后，达1.6万人，湖南则为1.4万人。根据既有数据，其中安徽、湖北的律师年增量都达到了10%以上。
在中部，大成的四家办公室设立时间都很早，有的甚至是全国性律所品牌进入本地市场“第一个吃螃蟹的人”。他们因此在过去十几甚至二十年中，见证了本地法律市场的巨大变化。
大成合肥就是如此。纪敏律师回忆道：“我们是2011年设立的，当时北京、上海的大所还没有在安徽设立过分支机构的，去司法厅办手续的时候，律管处处长都不知道该怎么办……十年过去，现在外地大所在合肥设立的分所多达几十家，导致了安徽市场翻天覆地的变化。随着外来所进入，越来越多律师认识到专业化是职业发展的必然。”
伴随市场日渐成熟，律师们也感受到客户对于本地律师认可度的增加。“客户选择本地律师的愿望越来越强烈。”李煦燕律师坦言，“过去涉及证券、跨国跨区域等业务，客户还是偏好选择北上广深的律师。现在大家越来越意识到，网络时代信息更加透明，大家知识的获取、信息经验的分享，不再像过去有那么大的地区差。此外，本地律师也在成长，越来越多律师有了专业的研究和积累，服务能力在不断提升。”
罗长德律师对此也感受颇深。“过去我们确实在这方面比较困惑。”他说，“现在通过加强学习和上迎下联，本地律师也在获得更多机会。再加上出于成本考虑，以及武汉经济发展、地位上升，外地客户和中介机构也都愿意和当地律师合作。”
罗律师举了资本市场的例子：过去这类业务被北上广深律师抢占较多，现在，大成武汉通过前端联系本土企业融资需求，后端借助大成网络提供服务，“在上市、私募、基金设立等方面都打下基础……目前我们圈定住一大批融资企业，有信心在武汉乃至湖北的资本市场领域占有一席之地。”
在纪敏律师看来，无论通过内部网络或外部同行合作获得更多业务机会，经济处于弱势的中部地区并不一定在合作上也处于弱势。“合作的前提是投资和产业转移，比如江苏企业有一个向安徽转移的过程，经济发展较落后的地区有承接性，我们占得地利；还有诉讼业务，只要有投资和业务落地，运营一两年肯定会产生诉讼，也要借助当地律师解决。”她说。
创新不断
中部律师对于自身特点的另一种认知则有些出人意料：在他们看来，中部律师在思维创新方面已经走在了前列。
李煦燕律师告诉ALB，这点首先体现在“以新认知处理老业务”上。以大成郑州为例，其主要营收业务为争议解决，伴随这两年宏观环境变化，案件量不断增长。在此过程中，大成郑州关注起再审研究，“成立了再审研究中心，里面有学术专业型律师，还有由资深法官转行来的律师，他们在从审判视角分析案件方面技高一筹……带来了很好的市场业绩。”
“如果能顺应发展，就感觉业务做不完；但如果总是原地踏步，就感觉市场环境越来越恶劣。”
- 纪敏，大成合肥
纪敏律师对此十分赞同。“律师行业的发展是一种派生发展，一定围绕着国家和地区经济结构的调整。如果能顺应发展，就感觉业务做不完；但如果总是原地踏步，就感觉市场环境越来越恶劣。”
她举了个有趣的例子，过去在合肥，做交通肇事业务的律师基本都坐等客户上门，但最近几年有机构采纳了律所和公司并行的模式，直接把业务做到了各大医院的骨科。“安徽法律市场的增量是巨大的，最主要的还是自己的主观能动性：你到底要不要迎接变化？只要你想，业务都是你的。”
挑战与期许
虽然对未来充满希望，中部地区的律师也坦言本地市场仍面临挑战。
第一个大问题在于市场的过度集中：几位受访者都指出，目前中部省份的律师数量、业务超过一半都集中在省会城市，还远谈不上均衡发展。纪敏律师因此告诉ALB，未来五年，大成合肥的目标之一就是“和合肥本地律所形成友好合作关系，并在安徽各个地市县，谋求共同发展的伙伴”。
市场、理念的普遍不成熟则是律师们面临的另一个痛点，例如罗长德律师指出武汉“律所规模普遍较小、管理较乱，品牌影响力不高”；毛英律师指出长沙律所“组织管理建设、IT基础建设比较薄弱……大客户真正到来时，他的需求会和这个市场有一定差距”；李煦燕律师则认为郑州律所在管理理念上面临不小挑战，“如果还是按照传统思维进行知识管理、资源整合，非常容易被淘汰或者分化掉”。
一方面是似乎层出不穷的机会，另一方面则是自身到底有多大能量，是否能接得住机会的思考。伴随这种喜忧参半的心情，中部律所都为未来规划了踏踏实实的策略。
李煦燕律师告诉ALB，下一步，大成郑州首先要看清自己，“更明确自己的市场定位。在河南这个区域，我们的优势是什么？短板是什么？做好战略层面的规划”。其次是“抓住人”，“培养和引进专业人才，只有人足够多，足够强，才可以应对挑战、可持续发展”。
而在合肥，大成最近租了个“大房子”：6400平米，“目前我们是安徽面积最大，也是最高的律师事务所”，纪敏律师说。“既然租下这么大的房子，肯定有一些内涵在做支撑。我们希望在未来5年内把大成合肥的规模做到400人左右，在每个专业领域都有能够作为中流砥柱的人才。”
大成武汉的目标，则是向着“品牌化、专业化、规模化、团队化”发展。具体来说，罗长德律师告诉ALB，就是“发展高附加值法律服务，嵌入到具体的新兴行业中去”，“让懂管理的人参与到律所管理中来”，以及“继续打造精兵团队，推出明星律师”。
毛英律师介绍，大成长沙未来将秉承热忱、智慧、坚定、规范、理性、科技的信念，围绕三个方面“用功”：一、继续深耕优势业务；二、聚焦服务好大客户；三、关注在创新业务市场做好投入。此外，涉外业务也会是下一阶段很重要的工作，“湖南真正能走出去的企业不多，而我们在此类服务领域具有绝对优势……我们把自己视为唯一的窗口，要陪伴湖南企业的全球化发展，把境外最好的法律服务给到湖南企业”。
“我们讲到经济发展、区位优势、开放程度、新业务需求不断增长……这些肯定是我们的机会。但挑战在于，有没有足够的人才、能力，去承接好需求、服务好客户，并且可持续地维护好市场？发展是机会，也是挑战。”李煦燕律师总结道。
ALB China Regional Report: Central China
Due to its unique geographical position and densely populated areas, Central China is a vital part of the country’s economy. In this report, we focus on four provinces, namely Hunan, Hubei, Henan and Anhui, to observe closely the latest industrial and legal market trends.
Central China has been a focus of the Chinese government since the beginning of 2021. In March, the Politburo meeting chaired by President Xi Jinping reviewed the Guidelines on Promoting the High-quality Development of the Central Region in the New Era, a document tailored to provide directions on the development of the Central China region during the 14th Five-year Plan period.
According to the guidelines, “with its geographical accessibility, well-connected transportation and abundant resources, the central region has a solid foundation in industrial development and boasts vast growth potential, making the efforts to promote high-quality development in this region of fundamental importance.”
This region, home to a permanent resident population of more than one-fourth of the national total, has shown clear momentum during its rise in the past few years thanks to both its population and geographical location. In 2020, the region contributed 21.9 percent of China’s total GDP, with average annual GDP growth of 6.4 percent over the past five years.
Innovation is indispensable for economic growth in the central region. Data shows that in the first quarter of 2021, all six provinces in the region recorded growth exceeding 20 percent in high-tech manufacturing or high-tech industry, with “rapid growth in strategic emerging sectors such as integrated circuits and smart manufacturing, and quick emergence of original innovations in quantum communications, dynamic storage chips, etc.”
Although well-connected by public transportation, the central region has long seen lacklustre economic growth due to long-term reliance on agricultural and heavy industries. Going forward, different provinces in this region will play different roles, with Anhui getting more deeply involved in the integrated development of the Yangtze River Delta region, Hunan promoting the construction of the Greater Bay Area, and Hubei and Henan becoming important hubs under the Belt and Road initiative by virtue of the Yangtze River and the China Railway Express.
NEW CAPACITIES, NEW SERVICES
Industrial transformation is crucial to achieving high-quality development. China proposed the establishment of regional technology innovation centres in its 14th Five-Year Plan, which includes plans for central cities of Hefei, Wuhan, and Changsha.
These plans have already started to deliver. Over the past few years, Henan Province has grown its small and medium-sized technology firms to more than 10,000, Anhui saw an increase of 96 percent in the use of industrial robots, Hubei reported growth of 25.6 times in 3D printing equipment, and Hunan doubled the size of its integrated circuit sector.
As service practitioners keenly aware of the local economic pulse, lawyers have noticed the evolving landscape in the central region and how these evolutions are affecting the legal services sector.
“With focus on building five industrial zones and four strategies in support of the Belt and Road initiative, Henan has rolled out full-scale innovations.”
- Li Xuyan, Dentons Zhengzhou
Li Xuyan, director of Dentons’ Zhengzhou office, has been practicing in Henan for more than 30 years. “Henan is a traditional agricultural powerhouse, but it has seen growing momentum in economic development in recent years. With focus on building five industrial zones and four strategies in support of the Belt and Road initiative, Henan has rolled out full-scale innovations in technologies, industries and business models with Zhengzhou as the centre,” she says.
According to Li, upgrading the manufacturing industry and new developments in emerging sectors such as big data and artificial intelligence require lawyers to have a broader knowledge base and deeper professional capabilities. Law firms must also be able to integrate resources. “Law firms must be able to provide one-stop solutions because fragmentation in service offerings is unable to satisfy clients’ needs,” she says.
Ji Min, director of Dentons’ Hefei office, returned to the city from Beijing in 2011 to start her own business. Over the past decade, she has witnessed “thriving legal service sub-sectors in tandem with economic innovations” in Hefei.
The financial sector is an example. "As Hefei strives to develop itself into a hub for head offices of financial institutions, financial regulators have tightened supervision, posing increasing pressure on product innovation by financial institutions. Local ones have begun to seek “specialized lawyers with international exposure and capable of aligning their thoughts with financial regulators.”
The investment sector also faces challenges of innovations. Dubbed the best “government investment bank,” the Hefei municipal government has offered policy incentives over the past decade to attract new industries to land here, and such new industries are extremely demanding on lawyers. When working on an integrated circuit deal recently, Ji noticed that she “could not even review the sales contract if lacking knowledge about this particular industry.”
Changsha of Hunan Province is another city in central China that has fostered its uniqueness in industrial development.
"Hunan is a manufacturing powerhouse. Many Internet firms such as Tencent, 58.com and Kuaishou now have presence in Changsha, while software, media and entertainment sectors are also developing rapidly,”
- Mao Ying, Mao Xiong, Dentons Changsha
"Hunan is a manufacturing powerhouse. It is only within the past several years that emerging industries have shifted from first-tier cities to second-tier cities such as Changsha. Many Internet firms such as Tencent, 58.com and Kuaishou now have presence in Changsha, while software, media and entertainment sectors are also developing rapidly,” says Mao Ying, director, and Mao Xiong, executive director, of Dentons’ Changsha office.
The arrival of new industries gives rise to growing demand for compliance services. “This requires multi-disciplinary knowledge and skills, and thus law firms must prepare in advance. We have already carried out surveys and marketing promotions in this field,” says Mao Ying.
Similar changes have taken place in Hubei’s Wuhan.
“Well-oiled traditional sectors such as steel, textile and tobacco used to form a vital part of the industrial chain in Wuhan. However, optoelectronics, automobiles and petrochemicals have overtaken the traditional sectors in recent years, and biomedicine, high-end equipment, aviation and aerospace sectors also starting to build presence,” notes Luo Changde, senior partner of Dentons’ Wuhan office.
With “younger partners who are receptive to new ideas,” the office has experienced rapid growth over the past few years in intellectual property (IP), pharmaceuticals and health care, and gaming, according to Luo.
- Luo Changde, Dentons Wuhan
Luo believes that legal services development that “rides on” economic development has ultimately driven the legal sector to a more mature state in the central region. “The legal service market used to be rather traditional where the service offering was not diversified and the level of value-add not high. The evolution of emerging service areas over recent years has propelled the legal service market to become more mature, creating more opportunities and challenges alike. The key is to grasp the opportunities that come with transformation and make a foray into frontier areas,” he believes.
CONNECT GLOBALLY
Apart from industrial transformation, the geographical location also helps unlock the growth potential of the central region. An important transportation hub at the geographical centre of China, this region will not only connect China domestically, but also link China to other parts of the world under the Belt and Road Initiative.
Take Henan as an example. Li tells ALB that “Henan’s status as a transportation hub is its fundamental competitive edge, with Zhengzhou conveniently located at the centre of China’s high-speed rail network. Zhengzhou Airport Area also ranks first in terms of passenger throughput and cargo throughput in the region. In addition, the China Railway Express that departs from Zhengzhou now covers more than 130 cities in over 30 countries.”
The flow of investment thrives with the flow of goods via the transportation network, enabling lawyers practicing in this region to be more involved in transactions of Chinese enterprises going global and overseas enterprises investing in China.
As to Chinese enterprises going global, Dentons Hefei has gained valuable experience by assisting Sungrow Power Supply and Hefei Huatai Group, two local enterprises, to venture overseas. On the other end, helping overseas enterprises set up shop in Anhui is more challenging to local lawyers. According to Ji, these enterprises will first have needs in IP, as Hefei municipality stipulates that “only enterprises having 30 or more patents in a particular field will be recognized as high-tech enterprises and thereby be entitled to policy incentives,” she says. “IP was not an in-demand practice area in Anhui at all in the past. However, whoever can thrive in the IP area now will enjoy first-mover advantage.”
Compliance and cultural conflict also post issues. “These issues have frequently come to the fore recently, and we are spending a lot of time and effort on them. This is because the robust compliance standards some overseas enterprises have in their home countries may not be suitable for Hefei. In these cases, lawyers need to communicate with the in-house departments and the boards of such enterprises,” says Ji.
Things are a bit different in Wuhan. “For the moment, not many local Wuhan enterprises are going abroad. As to foreign investment flow into Wuhan, we focus more on automobiles and pharmaceuticals, and are more engaged in IP and labour services,” says Luo.
But changes may soon take place. “With the free trade area and other conceptual districts of different themes being constructed, Wuhan has been blessed with abundant opportunities in internationalization. Already offering services in areas of foreign investment and cross-border investment, Dentons Wuhan will next sharpen its expertise, forge closer ties with overseas partners and stay on top of regulatory developments overseas,” he says.
Li also has a lot to share in this regard. With the central region, including Henan, opening wider to the outside world, “how could we play a better role by leveraging the well-built platform amid the right climate? With a global legal service network, Dentons should better structure deals involving Chinese enterprises going abroad and overseas entities investing in Henan, but we are not yet at our best. However, we have already set up the team, and will interact more with partners via Dentons internal channel and the international cooperation departments of our local bar associations.”
INTERNAL NETWORK
In the backdrop of the future dual circulation plan, internal connectivity, in addition to external connectivity, will constantly drive growth. This is particularly important for the central region as it enjoys certain exclusive geographical advantages.
Ji emphasises this strongly: “Besides going abroad, Anhui enterprises are also investing domestically in places such as Shandong and Inner Mongolia. For example, some local car manufacturers are invited to set up operations in other provinces or cities, and in such cases, they also need lawyers to assist with negotiations for more policy support.”
Changsha is another perfect example of the central region-building internal connectivity.
As mentioned earlier, Hunan, at the southernmost part of the central region, is poised to “fully advance the construction of the Greater Bay Area,” says Mao Ying. “Hunan's connection to Guangdong is actually not new. Hunan has always been important in accommodating industries transferred from Guangdong, and some joke that almost half of those working in Shenzhen are from Hunan.”
Mao Xiong adds that “Changsha is fully supportive of the Greater Bay Area initiative,” and positive interactions with law firms in the Greater Bay Area have brought huge opportunities for Dentons Changsha. He cites two examples. The first relates to urban renewal. “Shenzhen was the first in China to start urban renewal. After the Changsha municipal government issued the direction in April to vigorously develop urban renewal, government-linked companies immediately approached us because they are aware of Dentons' remarkable performance in such projects in Guangzhou and Shenzhen.”
Another example is in criminal justice. “The coastal city of Guangzhou generally has a larger number of smuggling cases. As Changsha looks to build three free trade zones, a larger number of smuggling cases is expected to emerge, particularly in places where customs offices are located. This will create huge opportunities for anti-smuggling expertise. Many few lawyers in Changsha practiced in this area before the establishment of the free trade zones. Dentons’ core expertise is thus clearly on display via its professional network,” says Mao Xiong.
Apart from connecting with other provinces, Changsha is also actively expanding its city cluster, as evidenced by the Five-year Plan for Integrated Development of Changsha, Zhuzhou and Xiangtan released in early June. This city cluster is expected to grow its GDP to 2.5 trillion yuan or more by 2025, with an average annual growth rate of 7 percent or higher.
Mao Xiong tells ALB that integration of Changsha, Zhuzhou and Xiangtan is not new, but the recent rapid pace in such integration has enabled lawyers to clearly see the new opportunities. “The three cities signed the Collaboration Agreement on Sharing and Building Intellectual Property Resources at the end of April, which envisions the establishment of three world-class industrial clusters covering machinery manufacturing, aviation and rail transportation and the enhancement of the impact of IP in the relevant fields,” creating more opportunities to IP lawyers.
Lawyers can also expect opportunities in areas of capital market development in tandem with the efforts to build Xiangjiang New District into the financial hub of Changsha, Zhuzhou and Xiangtan, infrastructure construction as part of city integration, as well as new infrastructure projects such as 5G network construction.
DRAMATIC CHANGES
There are huge opportunities ahead, but how is the legal services market in the central region preparing?
Although its share in the nationwide market is still insignificant, the central region has a sizeable number of lawyers. Rough estimates show that Henan has the largest number of lawyers at 27,000, followed by Anhui and Hubei at 16,000, and Hunan at 14,000. Both Anhui and Hubei witness an annual increase of more than 10 percent in the number of lawyers.
With four offices in the central region that have been active for the past ten or even twenty years, Dentons has witnessed dramatic changes in the local legal services market.
Dentons’ Hefei office is a case in point. As Ji recalls, “Dentons Hefei was founded in 2011 when big firms in Beijing and Shanghai did not yet have a presence in Anhui… After a decade, non-local law firms have opened dozens of offices in Anhui, and an inevitable trend of specialization has started to take shape in this market.”
As the legal services market matures, lawyers are also sensing growing recognition by clients of local lawyers. “Clients are increasingly willing to engage local lawyers. They used to prefer lawyers practicing in Beijing, Shanghai, Guangzhou and Shenzhen to handle deals in securities, cross-border deals or multi-disciplinary matters. Now clients are increasingly aware of the narrowed gaps between different regions in the Internet era as information is more transparent, and local lawyers are building up their capabilities via various knowledge acquisition and information sharing.”
Luo concurs. “This used to trouble us,” he says. “Now with a higher level of competency, local lawyers are winning more opportunities from clients. Cost considerations and Wuhan becoming more economically developed and important are also factors driving non-local clients and agencies to choose local lawyers.”
Take capital market as an example. This practice area used to be dominated by lawyers practicing in first-tier cities. However, Dentons Wuhan has now managed to “build a presence in IPO, private equity and fund establishment” by proactively reaching out to the financing needs of local enterprises and capitalizing on Dentons’ service network, according to Luo.
To Ji, although economically disadvantaged, the central region is not necessarily at a disadvantage when it comes to collaboration. “The premise for collaboration is investment and industry transfer. For example, the less economically developed Anhui Province is a perfect destination if Jiangsu enterprises look to transfer their operations. Furthermore, with funds poured in and operations set up, litigation will surely ensue after one or two years of operation, which must be tackled by local lawyers,” she says.
ONGOING INNOVATION
Lawyers in the central region believe they are already leading the charge in innovative thinking, which is somewhat surprising.
Li tells ALB this belief is first manifested as “addressing existing deals with new ideas.” For example, Dentons Zhengzhou used to derive revenue mainly from dispute resolution. In this process, it turned attention to retrial. The innovative step of “establishing a retrial research centre has reaped better earnings performance.”
- Ji Min, Dentons Hefei
Ji agrees. “The legal service sector develops alongside economic restructuring at national or regional levels. Law firms keeping pace with such developments will have unlimited business opportunities, while those standing still will face a worsening market environment.”
She gives an interesting example. Lawyers practicing traffic accidents in Hefei used to be able to wait for clients to approach them. In recent years, some law firms joined forces with enterprises and started to expand the reach of their business directly to the orthopaedic departments of major hospitals. “Anhui has huge legal service market opportunities. As long as one is proactive in embracing changes, one can reap all the business opportunities.” Ji points out.
CHALLENGES AND OUTLOOK
While optimistic about the future, lawyers in the central region admit that challenges remain in the local markets.
The biggest challenge is market concentration. The lawyers interviewed all point out that more than half of the lawyers and the businesses in the central region are concentrated in provincial capitals, which is far from being balanced. Ji thus tells ALB that one of the objectives of Dentons’ Hefei office for the next five years is to “seek partners from all cities, prefectures and counties across Anhui.”
An immature market and mindset is another pain point. As Luo points out, “Law firms in Wuhan are generally small in size, with poor management and weak brand reputation.” Mao Ying comments that law firms in Changsha are “weak in organizational management and IT infrastructure… resulting in gaps to client needs when opportunities arise.” Li believes law firms in Zhengzhou face challenges in terms of management philosophy, and “the traditional mindset may easily lead to failures.”
How can professional capabilities be improved to take up the constantly emerging opportunities? With mixed feelings, law firms in the central region are all making solid strategies for the future.
Li says that the next step for Dentons Zhengzhou is to “better define its market position, and develop strategic plans based on its strengths and weaknesses in the Henan market.” Second, it will “attract and groom professionals because only with a strong team equipped with the required skill sets can we respond to challenges and develop sustainably.”
Dentons’ Hefei office recently rented a “big house” of 6,400 square meters. “We occupy the largest office space at the highest floor in Anhui, says Ji, "We expect to grow the team to 400 staff over the next five years, and have key talents in each specialized area of practice.”
Dentons Wuhan Office aims to develop towards the direction of “strong brand, specialization, large scale and teamwork.”
Mao Ying summarizes the future development of Dentons’ Changsha office as “working hard.” The team will work hard to venture into new markets, and also work hard to serve the special service needs of big clients. Dentons Changsha will also dedicate more efforts to cross-border transactions going forward.
As Li concludes, “economic development, geographical accessibility, level of opening up and growing demand for new services… will all bring tremendous opportunities. The key challenge is whether we have enough talents and professional competency to serve clients and nurture the market in a sustainable manner. In a nutshell, development brings both opportunities and challenges.”
To contact the editorial team, please email ALBEditor@thomsonreuters.com.