今年的中国西部区域报告聚焦于广阔西部中的成渝和西安地区。2021年3月，中国最新颁布的“十四五”规划为三地制定了以创新、开放、联通为关键词的新发展方向。律师们分享了新规划下的创新产业机遇，以及他们对于愈发激烈的当地法律市场的一手观察。
每隔五年，中国政府都会通过五年规划的方式，为经济发展锚定下一阶段方向。在国际经济格局经历重新洗牌、中国提出“内外双循环”口号的背景下，在以2021年为开端的新五年中，激活区域市场无疑成为下一阶段重点，而位于西部的成都、重庆、西安三城，也在新一个五年中被赋予了更多责任。
首先是成渝双城，今年2月印发的《国家综合立体交通网规划纲要》中，第一次明确将成渝双城经济圈提升到和京津冀、长三角、粤港澳大湾区同等地位的中国“第四极”位置。在成熟经济圈普遍位于东部且增速趋缓的情况下，成渝“第四极”将平衡区域经济的空间格局，也担负起成为“全国高质量发展重要增长极和新动力源的历史使命”。
目光向北，来到西北强市西安，4月，西安市在“十四五”规划中也设定了亮眼目标：到2025年GDP达到1.4万亿，并计划投资3.2万亿。届时，西安将基本形成现代产业体系，并成为中国对外商贸的关键门户。
未来，上述规划“不仅将有力撬动西部地区发展，破解区域发展不平衡、不充分问题，也将有效带动全国的高质量发展”，《成都商报》分析道。
增强联通
在中国，东部地势平坦，西部则地形丰富。一方面，这导致了东部先于西部发展的历史格局；但另一方面，和东部普遍的农耕文化相比，西部城市往往更具“风味”，这也体现在其经济发展中。
“未来成都会是西部重要的经济、科技、文创、对外交往中心，以及综合交通枢纽。”
-李晓梅，竞天公诚律师事务所
以成都为例，竞天公诚律师事务所成都办公室合伙人李晓梅律师告诉ALB：“成都是中国西南地区中心，当地经济文化很有特点。”尤其过去两年，律所服务的“餐饮、文化娱乐、旅游、政府平台公司、医药和高科技行业企业明显增加”，资本市场和争议解决业务也经历了快速发展。
究其原因，李律师认为是透过成渝发展规划，成都的身份更明晰了，未来成都会是“西部重要的经济、科技、文创、对外交往中心，以及综合交通枢纽”。
事实上，成渝双城经济圈在2020年初才第一次被提出。10月，《成渝地区双城经济圈建设规划纲要》发布。《规划》落地不到一年，成渝已经在交通、市场、产业发展等领域展开多项合作，据华龙网数据，“一年多来两地签署合作协议200多个，开展236个重大项目，几乎每天都有新的合作项目诞生”。伴随成渝高铁复兴号通车，两城间也真正实现了1小时互通。
“根据我们的统计，每一趟成渝高铁列车上都有一位泰和泰员工。”
-刘志强，泰和泰律师事务所
“根据我们的统计，每一趟成渝高铁列车上都有一位泰和泰员工。”泰和泰律师事务所高级合伙人、重庆办公室管委会主任刘志强律师用实例说明了双城联通给律师带来的影响，“双城战略缩短了时空差距，从过去的1V1两个组合市场，变成现在的2V2四个组合市场。我们的跨区域合作明显增加，在创业投资、投资并购、资本市场、商业贸易、争议解决等领域都有了新的合作机会。”
中联律师事务所重庆办公室主任韩利锋律师也感受到了双城互通带来的切实机会。“成渝在打造世界级机场集群，两地机场都在大规模扩建，中联重庆就参与了重庆机场新跑道建设。”他说。
实际上，成都、重庆本身的经济体量已相当可观，有人形容未来双城联通将产生“光照效应”，照亮周边一系列中小城市的发展。2020年，四川和重庆联合出台《川渝毗邻地区合作共建区域发展功能平台推进方案》，锁定9个毗邻地区作为重点合作平台。
“区域打通后，可能会提供更多想象空间。我们未来希望在这些区域做拓展，包括客户培育、服务引入等。”
-韩利锋，中联（重庆）律师事务所
“区域打通后，可能会提供更多想象空间。”韩利锋律师指出，“例如重庆的渝北和四川的邻水、四川的泸州和重庆的江津等川渝交界区域都出现了活跃迹象。我们未来也希望在这些区域做拓展，包括客户培育、服务引入等。”
当然，联通意味着更大的市场，也将城市和其中的经济主体置于新的竞争之中。根据2020年数据，重庆、成都在中国城市GDP排名中分列第五和第七，然而两地产业结构相似系数达0.96。“推进产业协作是双城经济圈建设的重中之重，但由于两地资源禀赋、区位条件大致相当，产业发展面临同质化挑战。这种产业格局关系也决定了两地法律服务的竞争格局。”刘志强律师坦言。
根据两地律协调研，“成渝律师在西部地区具有比较优势的业务领域中有90%的重叠；在全国具有比较劣势的业务领域有80%的重叠”，刘律师说。在他看来，未来两地律师如何不因为过度的同质化竞争导致整体受损，同时通过错位建设、差异化发展，在业务领域上真正互补融合，将是十分考验智慧的重要课题。
与此同时，作为西北重镇的西安，也在不断强调增强联通的重要性。
根据“十四五”规划，关中平原城市群承担着“发展壮大”的责任，西安是该城市群核心，未来将带动甘肃、陕西，甚至更广阔区域的发展，西安也因此被确立为中国第九座“国家中心城市”。
“西安确实迎来了一次历史性机遇。作为西北的桥头堡，必将与成渝共同成为西部发展的发动机。”
-王杰，大成律师事务所
“西安确实迎来了一次历史性机遇。”大成律师事务所西安办公室主任王杰律师坦言，“西安作为西北的桥头堡，必将与成渝共同成为西部发展的发动机。”而西安的联通作用已经呈现在了律所业务中：过去一年，大成西安开拓了跨省区服务，“比如为青海省格尔木市市政府、开发区、国有企业提供了大量的综合法律服务”。
泰和泰律师事务所西安办公室高级合伙人章龙律师对此有着相同观察。“西安在高新技术、文旅等方面具有得天独厚的条件，又能够辐射周边省区——如甘肃、宁夏、山西、内蒙等，形成经济圈。”他说，“我们将借力这个机遇，在高新技术、文化旅游等方向创新产品，同时将服务地域向周边省区，例如兰州、银川等地扩张。”
创新产业，创新服务
如上观察，成渝、西安在未来五年中所承担的责任不可谓轻松，也因此，变化已经在快速发生。
“过去一年市场发生了很多新变化，出现了新的经济形态、商业模式、技术发展以及监管要求。”大成律师事务所成都办公室主任刘守民律师告诉ALB，“这都使法律服务需求更加多样化、专业化，对律师事务所提供综合性法律服务和适应不确定性竞争环境的能力要求也增加了。”
诸多变化中，最明显的当属产业结构的更新。
在成都，市郊25公里外的“独角兽岛”项目已交付完工；西部科学城成都部分在过去三年中引聚高新技术企业438家，聚集新经济企业3600余家。电子信息产业也在2020年成为成都首个万亿级“世界级”产业。
极米科技是成都电子信息板块的明星企业，今年，大成成都作为发行人律师帮助极米科技登陆了上交所科创版。刘守民律师说，大成成都在高新领域的客户也达到了约40家。
过去十年里，竞天成都也“一直有意在高新产业方面进行客户布局，特别是成都高新区，在该地区储备了不少拟上市公司客户，包括医疗科技、大数据、无人机巡检技术和无人机制造公司等”，李晓梅律师告诉ALB。她观察到，“智能制造和电子信息将成为中国实现大国崛起的关键一环，但相关法律法规配套还不够完善”，因此律所要在“企业和个人数据、法律责任分担、网络安全、规范平台以防止数据垄断、标准化法、劳动法改革等引发的一系列问题”上提前做好研究和准备。
刘守民律师对此表示赞同。他指出，高新产业对法律服务的需求不同以往。一是需要律师“精通知识产权和涉外业务”，例如成都重点打造的芯片行业，客户高度重视知识产权引进与部分技术的自主研发，“尤其在引进国外知识产权许可的过程中，需要涉外律师审核授权合同，也需要知产律师排雷知产风险及自主知产布局”。
二来，律师也要能够“针对高新产业公司的生命周期，针对性地提供服务”，例如公司初创阶段需要律师制作股权激励方案；投融资阶段需要提供融资方案审查、投融资协议审查、公司章程修订等服务。最后，近来“企业数据保护业务也呈上升趋势”。
刘志强律师也观察到，过去一年，受益于新产业发展，泰和泰成渝办公室在“大数据、互联网、创投、合规治理等新领域取得突破性进展”，他将相关客户需求的变化总结为“广度”和“深度”两方面，即要求律所提供“涉及面广的律师团队”，且律师要“擅长某个专业领域，甚至提供定制化服务”。
类似变化也正在重庆发生。
在西部科学城重庆部分，大成律师事务所重庆办公室主任陈友坤律师介绍到，仅2021年第一季度，“签约项目达40个，投资额473亿元，同比增长达399%”。陈律师说：“科技城内多为技术密集型企业，对知识产权法律服务有相应需求。同时，企业在经营过程中会存在很多问题，律所可提供一站式法律服务。”
针对该领域客户，陈律师近来特别关注到了“合规热”局面的出现。“合规业务或将成为重庆法律服务市场的新秀。监管环境的趋严、特定行业企业在技术、业务模式上的特殊要求，催生了刑事合规、数据合规等细分领域需求……大成重庆也针对企业合规提供配套服务，例如推出了民营企业家及国企高管人员法律风险防范产品等。”陈律师说。
中联重庆也开始发力布局大数据、人工智能领域，但韩利锋律师坦言，相关业务增长、成熟还需时日。但他指出了另一个有趣现象：“尽管一些产业本身很传统，但受到互联网、大数据发展影响，产业本身发生了改造升级，例如餐饮行业，对于品牌、知识产权、技术赋能需求很大，也蕴含着法律服务机会。”
面对这些需求，韩律师介绍道，重庆律协去年举办的青年律师法律服务产品研发大赛很受欢迎，涌现出一系列针对新商业模式的服务产品，中联重庆的“企业数据合规管理标准化服务”在其中也脱颖而出。
作为西部的重要科研基地，西安在产业升级上也不甘落后。
西安云集了众多大学和研究机构，在“十四五”期间，西安构建现代产业体系的规划被总结为“6+5+6+1”，即6个以航空航天、高端装备制造为代表的支柱产业；5个以人工智能、大数据为代表的新兴产业；6个以现代金融、现代物流为代表的生产性服务业；以及1个特色文旅产业。“如果未来五年产业规划全部落实到位，西安产业规模将达到万亿以上。”
律师们也正在快速追上产业发展的脚步。章龙律师告诉ALB，泰和泰西安原来“主要从事较为传统的民商事诉讼、刑事辩护等业务”，如今“快速拓展薄弱领域，成功办理了收并购、股权融资、企业债券发行等方面业务……强化合规管理也是企业发展的新趋势，我们也在积极开拓近来炙手可热的合规和大知产业务等”。
而在王杰律师看来，“西北对于新兴业务需求的不断更新、客户的多元化”，都促进了大成西安新业务板块增长。过去一两年，除了政府法律服务、资本市场、建设工程与房地产、争议解决业务发展强劲，大成西安也开拓了新板块，例如符合西安未来发展重点的博物馆综合法律服务业务，“签署了包括兵马俑博物馆在内的众多重量级文博机构”。
“西大门”
如《成都商报》所说：“创新是最强动能，开放就是最大变量。”继续强化对外开放也是西部下一步的发展重点。
回顾历史，成渝地区上一轮的快速发展正是受益于外向型经济增长。然而内陆地区在对外出口方面存在先天制约，成渝需要针对自身特色，强化航空和信息枢纽建设，并类似美国阳光地带，“更侧重科技创新、金融、商贸服务、文化旅游等新兴服务职能”。
2021年第一天，首列中欧班列（成渝）号正式发车。“在RCEP签署和中欧投资协定谈判完成的背景下，中欧班列（成渝）将有更大的发展机遇。”北京交通大学教授纪寿文指出。未来欧盟、东亚将成为成渝开放的重要市场。
在“走出去”方面，成渝地区的企业也很活跃。泰和泰的刘志强律师介绍说，截至2020年底，重庆有“走出去”企业250余户，投资总额120亿美元，分布在60多个国家地区；成都“走出去”企业达730余家，投资总额280多亿美元，分布在近90个国家地区。“成渝企业走出去重要地区有中国香港、东南亚、欧盟、非洲、南美洲等，主要投资在矿业、农业、高新技术、工业制造、医疗健康等领域。”刘律师说。
也因此，服务于这些企业是泰和泰的重点之一，刘律师说，成渝办公室目前提供涉外服务的客户有超过120家，服务内容跨越“投资政策、税收协定、商务谈判和协议签署、项目尽调和论证、境外融资、境外上市、海外信托、国际投资并购反垄断审查、知识产权”等多个领域。
涉外业务也是竞天成都的重点和优势领域，包括“境外资本市场，即香港、美国上市；跨境并购和外商直接投资；境外债券融资等”，李晓梅律师告诉ALB。借助成渝下一步的开放势头，竞天成都也会“引进更多涉外领域合伙人，扩大在境外资本市场、跨境并购和国际诉讼方面的影响力”。
未来，对外开放也将带给西安更大的想象空间。
作为古丝绸之路起点，西安自古占据突出的地理区位优势。未来五年这一优势将被继续强化，咸阳国际机场扩建、中欧班列运输通道和口岸扩能改造、中欧班列集结中心等，都被列入了交通强国建设工程。
根据数据统计，2020年前五个月中，西安始发中欧班列开行量达1667列，同比增速200%，为全国之首。如今西安吸引了29个省份货源在此分拨，进口货物中也有70%以上由西安分拨至全国。
在这样的背景下，泰和泰的章龙律师观察到“以‘一带一路’为主题的涉外法律服务市场需求可谓异军突起”，泰和泰西安也正在“大力引入涉外法律人才，在服务一带一路、国际大都市建设及外来投资营商环境等方面加大力度”。
然而作为尚不发达市场，西安律师的理想和现实间难免存在差距。根据2019年数据，当年西安律师办理涉外法律服务数量仅为7件，参与国际商事仲裁数量仅为1件。
王杰律师告诉ALB，这种状况已经在快速改观。以大成西安为例，2020年代理涉外仲裁及诉讼约23件，2021年截止目前代理14件；大成西安还为超过20家外企提供常法服务，也参与了外商投资企业的清算、并购重组等非诉业务。
而且，恰恰因为涉外服务市场尚未成熟，律所只要有所播种，就能够在西安市场快速收获。例如大成西安，在2019年引进了精通韩文的律师团队，“两年内外商投资企业常法客户数量剧增，连续签署了包括三星在内的多家韩国企业”，王律师说。
当然，西安的涉外业务发展还远非理想，其中最大挑战就是机遇与资源之间的不匹配。王杰律师指出，来到西安市场的外资客户多为优质客源，他们面对的却是数量有限的涉外律师，且律所“培养涉外人才的时间、经济成本无疑十分巨大”。如何使供需快速匹配，避免高端业务被外来律师占领，是亟待西安律师思考的命题。
法律板块面临机遇和挑战
活跃的地方经济必然伴随蓬勃的法律服务市场，这点也体现在成渝、西安的律师人数中。
根据最新数据，目前成都律师人数约为1.68万，律师事务所为880家；重庆律师人数约1.34万，律所894家，2020年总创收近42亿；西安律师人数则为4770人，律所共294家。
谈到当地法律服务市场的特点，大成成都的刘守民律师首先指出了过去几年成都市场出现的几个新趋势。首先是“行业透明度越来越高，律所品牌不再是客户的唯一选择，客户更倾向在大的律所平台上直接选择认可的团队……大成成都因此设置了17个专业组。”刘律师说。此外，“客户对于过程参与的需求加强。随着消费行为不断变迁，新兴客户群体的法律消费习惯趋于互联网化、数字化、透明化”。
另一种转变则直接回应于疫情，尤其是疫情下诉讼业务的增长。刘守民律师说：“迅猛增长的诉讼需求使法律行业空前承压，可视化等新兴技术则带来优化效率的可行方案。在双重驱动下，法律服务正走向智能化、自动化。”此外，诉讼案件不断增多，“市场对法律知识、文书的需求不断增长，知识管理开始呈现出‘变现’趋势，给商业化法律服务带来巨大成长空间”。为此，大成成都也设置了知识管理部，专门负责运用系统梳理业务信息。
律师们感受到的另一个趋势，则是地方法律市场的不断整合，对此中联重庆可谓极佳例证。今年3月，在重庆有26年历史的老牌大所重庆索通正式挂牌融入上海中联律师事务所。韩利锋律师告诉ALB，中联的成员律所多为地方性大所，和北上广大所在各地开设分所的趋势相对应，地方大所自发形成共同体，开始了另一种“逆向”的一体化过程。
谈到这一选择背后的原因，韩律师坦言，未来法律市场必然会向规模化和精品化两极继续分化，中联可以视为地方大所规模化的一种创新尝试。“成为全国性事务所，对我们在全国范围内拓展市场肯定有帮助。”他说，“同时兄弟所各有优势，希望互相借力，拓宽各自的业务领域，补齐专业短板……据我了解，各个分所目前在业务合作上已经有业绩出现。”
下一步，中联重庆的重点之一就是做好中联内部扩展，“和兄弟所，特别是西南地区云贵川的兄弟所配合好”，韩律师说。
在西安，大成西安的王杰律师也观察到了类似趋势。“特别是近一两年，京沪主要的全国性律所几乎都在西安开设了办公室，同时西安本地头部律所也加大了整合力度。西安法律服务市场竞争还是蛮激烈的。”他说，“西安市场未来将快速发生行业细分领域的重整，为具有行业知识与经验的律师提供了新的发展机遇。”
在成都，竞天成都的律师们也做好了准备，通过“不断学习新的产业知识，以迎接产业时代的到来”，李晓梅律师说。伴随市场加速裂变、整合、更新，李律师指出，未来区域市场律师需要担负起更大职责。“成都法律市场竞争无序化非常严重……随着中国经济的发展和越来越国际化，今后的法律市场也需要更加市场化、专业化。竞天成都的合伙人会直面市场挑战和竞争，努力引导区域法律服务市场公平、公正的竞争秩序。”她说。
ALB CHINA REGIONAL REPORT: WEST CHINA
In this year’s West China regional report, we focus on the urban agglomeration of Chengdu-Chongqing, as well as the city of Xi’an. In March 2021, China launched its latest fourteenth five-year plan, which set specific goals for the two areas based on the principles of innovation, opening up and regional connection. Local lawyers share new opportunities brought by the novel plan, as well as their first-hand observations of the intense competition within the legal market.
Every five years, the Chinese government will issue a new plan to guide the country's socio-economic development in the next phase. The year 2021 is the starting point of China’s fourteenth five-year plan, and the plan sets the revitalization of regional markets as a key priority, with Chengdu, Chongqing and Xi’an, the three major cities in West China, expected to play a greater role.
This February, China, for the first time, elevated the economic position of the Chengdu-Chongqing Dual-City Economic Circle as the “fourth pole,” on par with Beijing-Tianjin-Hebei, the Yangtze River Delta and the Greater Bay Area. The "fourth pole" position of the Chengdu-Chongqing area will address the current imbalance in China’s regional economies, and undertake a "historical mission of becoming an important growth pole and new driver of high-quality development of the whole country.”
Further north, Xi’an, an economic powerhouse in the northwest, set aggressive goals in its city-level fourteenth five-year plan: To reach 1.4 trillion yuan ($220 billion) in GDP and total investment of 3.2 trillion yuan by 2025. With such objectives accomplished, Xi’an would have put in place a modern industrial system and become a key gateway for foreign trade in China.
ENHANCED CONNECTIVITY
West China is topographically diverse, unlike East China which is occupied mostly by plains. This has in part contributed to a more developed eastern region than its western counterpart. However, on the other hand, compared to the prevailing agrarian culture in the East, cities in West China have more "flavours,” which is also reflected in their economic development.
"Chengdu is a central city in Southwest China and has unique economic and cultural traits."
-Li Xiaomei, Jingtian & Gongcheng Chengdu office
Take Chengdu for instance. As Li Xiaomei, partner of Jingtian & Gongcheng’s Chengdu office, tells ALB, "Chengdu is a central city in Southwest China and has unique economic and cultural traits." This is particularly true over the past couple of years when the firm has witnessed "an obvious increase in the number of corporate clients in catering, culture and recreation, tourism, pharmaceutical and high-tech sectors as well as government financing vehicles.”
According to Li, this is because the Chengdu-Chongqing area development roadmap creates a clearer identity and role for Chengdu.
As a matter of fact, the Chengdu-Chongqing Dual-City Economic Circle was not proposed until early 2020, followed by the release of the Outline of the Plan for the Development of the Dual-City Economic Circle in October. In less than a year, Chengdu and Chongqing have already joined forces in a number of projects. With the Fuxing high-speed railway now in operation, travelling between Chengdu and Chongqing takes only one hour.
"Our data show that every Chengdu-Chongqing high-speed railway train carries one Tahota staff member on board."
-Liu Zhiqiang, Tahota Law Firm Chongqing office
"Our data show that every Chengdu-Chongqing high-speed railway train carries one Tahota staff member on board. The dual-city economic circle strategy has definitely cut down travelling time, leading to increased cross-regional collaboration among Tahota offices," says Liu Zhiqiang, director of the managing committee of Tahota Law Firm’s Chongqing office.
Han Lifeng, director of SGLA Law Firm’s Chongqing office, also feels the benefits brought by intercity connection. "Chengdu and Chongqing are building a world-class airport cluster, and SGLA is involved in the construction of new runways at Chongqing Airport," he says.
In fact, with considerable economic size of their own, Chengdu and Chongqing are believed to be able to produce "illuminating effect" by their connection, driving adjacent small and medium-sized cities to prosper.
"Regional connectivity is set to provide more room for growth, as evidenced by signs of business boom at border areas between Chongqing and Sichuan."
-Han Lifeng, SGLA Law Firm Chongqing office
Han believes that "regional connectivity is set to provide more room for growth, as evidenced by signs of business boom at border areas between Chongqing and Sichuan… We hope to expand to these areas, such as nurturing client pipeline and introducing legal services."
However, as shown in a 2020 survey, although Chongqing and Chengdu were ranked fifth and seventh respectively among all Chinese cities in GDP terms, the industry structure of the two cities have a similarity coefficient of 0.96. "Such homogeneity also dictates the competition landscape in the legal service sector of these two cities,” feels Liu.
According to a survey compiled by the local law societies, "lawyers in Chengdu and Chongqing share 90 percent of the comparative practice areas in West China, as well as 80 percent of the less comparative practice areas nationwide,” says Liu. To him, it will be very challenging to find a real cooperation path between lawyers of the two cities and avoid damage to the legal service sectors due to excessive competition.
Likewise, Xi'an is also continuously underscoring the importance of enhanced connectivity.
As outlined in the fourteenth five-year plan, the Guanzhong Plain urban cluster is tasked to "further develop and grow.” Xi'an, at the core of this cluster, is poised to spur economic development in Shaanxi, the province it is the capital of, as well neighbouring Gansu Province and even the broader region.
"Xi'an has indeed ushered in a historic opportunity. The positive impact of enhanced connectivity is actually being felt in the firm's business.”
-Wang Jie, Dentons Xi'an Office
As Wang Jie, director of Dentons’ Xi'an Office, notes, "Xi'an has indeed ushered in a historic opportunity.” The positive impact of enhanced connectivity is actually being felt in the firm's business. In the past year, Dentons Xi'an expanded to serve clients in other provinces. "For example, we have rendered comprehensive legal services to the municipal government, development zones and State-owned enterprises in Golmud, Qinghai Province," notes Wang.
Zhang Long, senior partner of Tahota Law Firm’s Xi'an office, concurs. "Xi'an is uniquely positioned in growing high-tech, cultural and tourism sectors, as well as can spur growth in adjacent provinces and cities," he says. "Tahota will leverage such opportunities to expand our services to adjacent cities, such as Lanzhou and Yinchuan."
BOOSTING INNOVATION
Changes are happening fast in light of the growing role of the Chengdu-Chongqing area and Xi'an in the coming five years.
"The market witnessed many new changes in the past year, including the emergence of novel economic and business models, technological developments and regulatory requirements," Liu Shoumin, director of Dentons’ Chengdu office, tells ALB. "All these changes require highly diversified and specialized legal services.”
Industrial upgrading stands out among all the changes.
In Chengdu, this is evidenced by the completion of the "Unicorn Island" project 25 km away from the city centre. Meanwhile, Chengdu Science City has become home to 438 high-tech enterprises over the past three years, and Chengdu had grown its electronic information industry to hit 1 trillion yuan in 2020.
According to Liu Shoumin, Dentons Chengdu is now serving about 40 clients in the high-tech sector, including Chengdu XGimi Technology, a star company in the electronic information sector, which went public on Shanghai’s STAR Market with Dentons Chengdu as its advisor.
Jingtian & Gongcheng has also been "making efforts to gain a foothold in the high-tech sector, and has now built a solid client pipeline of a large number of pre-IPO clients engaging in medical technology, big data and drone manufacturing,” says Li.
As Liu Shoumin points out, clients from the high-tech sector have different needs for legal services. In addition to "expertise in intellectual property and foreign-related business,” they also require "targeted legal services that stay adaptive to the life cycle of high-tech firms.” For instance, lawyers are expected to develop equity incentive plans for firms at the start-up phase, and to review financing plans and amend articles of association for firms seeking financing in later phases.
Liu Zhiqiang also observes that the evolution of emerging industries spurred "significant breakthroughs in big data, the Internet, venture capital, compliance and corporate governance sectors" in Tahota Chengdu and Chongqing offices over the past year. He summarizes changing client demands as being both "broader" and "deeper": law firms are expected to have a team with "multi-disciplinary and all-faceted expertise,” while also have lawyers who "specialize in a given area, and can even provide customized services.”
Similar changes are also taking place in Chongqing.
Chen Youkun, director of Dentons’ Chongqing office, explains that in the first quarter of 2021 alone, Chongqing Science City has "signed contracts for 40 projects, attracting investment of 47.3 billion yuan, a quarter-on-quarter increase of 399 percent."
He sees a trend of "heightened compliance" from clients in this space. "The tightening regulatory environment, as well as the distinctive technological and business models of particular industries, give rise to demands for segmented compliance services such as criminal compliance, data compliance and so on.
SGLA Chongqing is also making a foray into big data and artificial intelligence. However, Han admits that it will take time for such business to grow and mature. He also points out another interesting trend where "some traditional sectors, say the catering industry, have undergone structural transformation and upgrading in the Internet and big data era, also creating opportunities for the legal sector."
Xi'an, an important research base in the West, is also taking a positive stance in pushing forward with industrial upgrading.
Home to many universities and research institutes, Xi'an is expected to develop a modern industrial system in the next five years and law firms are now catching up with the pace of industrial upgrading. Zhang tells ALB that Tahota Xi'an "primarily specialized in civil and commercial litigation, criminal defence and other more traditional areas in the past,” but now "have been rapidly building up capacity in the areas of M&A, equity financing and corporate bond issuance. We are also building presence in compliance and intellectual property."
To Wang, "the ever-changing demand for emerging services and growing diversification of clients in northwest China" have contributed to the growth of new business in Dentons Xi'an. In the past year or two, Dentons Xi'an has expanded its service offerings to cover, for example, comprehensive legal services for museums, which is a priority in the future development of Xi'an, and has "onboarded as clients heavyweight cultural and exhibition institutions, including the Museum of Terra Cotta Warriors.”
WEST GATEWAY
As Chengdu Economic Daily puts it, "innovation is the strongest driver and opening-up is the biggest variable." The next priority for West China will also be to double down on its efforts to open up to the outside world.
In retrospect, the previous boom in the Chengdu-Chongqing area benefited exactly from growth in the export-oriented economy. Being inland areas, however, the region is naturally at a disadvantage in export and international trade. To address such weakness, it must strengthen the construction of aviation and information hubs, and "focus more on novel service functions, including technological innovation, financial, commercial and trade services, and cultural tourism."
The first China Railway Express (Chengdu-Chongqing line) departed on the first day of 2021, paving the way for the European Union and East Asia to become new markets.
Companies in this area are also actively "going out.” Liu Zhiqiang tells ALB that as at the end of 2020, more than 250 enterprises in Chongqing built presence abroad, investing a total of $12 billion overseas; in Chengdu, more than 730 enterprises have ventured out, with total investment exceeding $28 billion. According to him, "firms from this region mainly invest in mining, agriculture, high-tech, industrial manufacturing, medical and healthcare sectors in Hong Kong SAR, Southeast Asia, EU, Africa and South America." For this reason, serving these firms is one of Tahota's priorities, and its Chengdu and Chongqing offices are now advising more than 120 such clients.
Cross-border practice is also one area of strength for Jingtian & Gongcheng Chengdu, and it specifically covers "overseas capital market (i.e., listing on Hong Kong and US markets); cross-border M&As and foreign direct investment; and overseas debt financing,” Li tells ALB.
Xi'an will also enjoy more room for development from the opening-up policy.
As the departure point of the ancient Silk Road, Xi'an boasts superior geographical location. The expansion of the Xianyang International Airport, capacity expansion and renovation of the China Railway Express routes and ports, and construction of the China Railway Express freight hub are all included as priority projects to build China into an economic powerhouse. Statistics show that Xi'an is now distributing cargos to and from 29 provinces, and more than 70 percent of imported goods are distributed from Xi'an to locations across the country.
Amid this context, Zhang observes "surging demand for cross-border legal services centering around the Belt and Road Initiative.” Tahota Xi'an is, therefore "actively attracting specialists with foreign-related expertise, and doubling down on serving areas relating to BRI and foreign investment.”
However, as Xi'an remains a less-developed market, lawyers there have a lot of work to do to substantiate their vision. According to 2019’s data, lawyers practicing in Xi'an only handled seven foreign-related deals that year, and participated in merely one international commercial arbitration.
Things are fast improving, according to Wang. For example, Dentons Xi'an itself has handled some 23 foreign-related arbitrations and litigations in 2020, and this number has already reached 14 so far in 2021. It also advises over 20 foreign entities on a long-term basis and has represented foreign-invested enterprises in liquidation, M&A and reorganization and other non-contentious matters.
The hard work of law firms is more likely to be paid off precisely because Xi'an's foreign-related legal service market is less sophisticated. For instance, Dentons Xi'an formed a team with Korean language proficiency in 2019, "leading to an exponential increase in foreign-invested enterprises using us for perennial legal advisory services over the past two years,” says Wang.
Admittedly, the foreign-related legal service sector in Xi'an is far from mature, and one of the biggest challenges lies in the mismatch of opportunities and resources. How to rapidly match supply with demand and avoid high-end business from being grabbed by outside lawyers is an urgent task to be addressed by legal practitioners in the city.
CHALLENGES AND OUTLOOK
Economic prosperity is usually accompanied by a robust legal service market, which is reflected in the lawyer population in Chengdu, Chongqing and Xi’an.
The latest data show that Chengdu currently has about 16,800 lawyers and is home to 880 law firms, Chongqing has approximately 13,400 lawyers from 894 law firms, with revenue of 4.2 billion yuan in 2020, and Xi'an has a lawyer population of 4,770 across 294 firms.
Speaking of the characteristics of the local legal market, Liu Shoumin of Dentons Chengdu notes that "a firm's brand is no longer the only consideration for clients. Rather, clients prefer a team with strong strength in a particular area." In addition, "clients increasingly prefer to get involved in the process, and clients from emerging industries tend to take a more Internet-based, digitalized and transparent approach to the consumption of legal services.”
Another trend felt by lawyers is the constant consolidation of regional legal markets. SGLA Law Firm Chongqing is a perfect example, which was transformed from Solton & Partners, an established firm with 26 years of history in Chongqing, only this March. Han tells ALB that most of SGLA's members are established local big firms, which represents some kind of "reverse" integration as opposed to established firms in Beijing, Shanghai, Guangzhou and similar top-tier cities setting up branches elsewhere.
Han admits that since they predict the legal sector is bound to polarize towards scale or specialization, the SGLA model may be seen as an innovative attempt for a regional firm to scale up. As he puts it, SGLA "growing into a national firm will definitely help us in terms of business expansion across the country, and member firms are also expected to complement their respective strengths and fill in gaps in areas of weaknesses."
Going forward, one of the priorities of SGLA Chongqing is internal collaboration, "particularly with SGLA offices in Yunnan, Guizhou and Sichuan provinces,” says Han.
Wang of Dentons Xi'an also observes a similar trend. "In the past year or two, almost all major national law firms from Beijing and Shanghai have opened offices in Xi'an, and leading local Xi'an firms have also been stepping up consolidation. The legal sector in Xi'an will soon embrace reorganization within industry segments, creating new opportunities for lawyers with industry knowledge and experience."
In Chengdu, Jingtian & Gongcheng is also ready to adapt to changes. They are "constantly learning about new industries to embrace the new industrial era,” says Li. As the market increasingly goes through segmentation, consolidation and renewal, lawyers practicing in regional markets are set to play a bigger role. "Competition in Chengdu's legal sector is in severe disorder… As the Chinese economy is increasingly international-oriented, the future legal market must also be more specialized and market-oriented. Jingtian & Gongcheng partners will take the challenge head-on and guide the Chengdu market to compete with fairness and order," she says.
To contact the editorial team, please email ALBEditor@thomsonreuters.com.
