By hannover-web.com On October 19, during the ongoing Legal Week event in Haikou, several lawyers engaged in a deep discussion regarding the challenges faced by Chinese enterprises venturing into overseas markets. A key takeaway from the discussions was the recognition that cultural differences pose significant hurdles. One of the effective measures to address these challenges highlighted was the need for enhanced collaboration among legal professionals from different countries and regions.
As China’s economic strength and international influence grow, an increasing number of Chinese firms are seeking opportunities abroad. Unlike the earlier focus on basic trade and investment, current endeavors by these companies involve more complex market development and long-term operations, making cultural considerations increasingly vital.
Zhang Ting, the head of the International Business Department at Beijing Daokete Law Firm and an expert in foreign-related legal services, noted that the transition from “product going global” to “brand going global” and “building global supply chains” presents distinctive challenges due to cultural differences. She emphasized that the complexities and uncertainties of cultural environments can lead to a misalignment between actual returns and expected goals, potentially resulting in failed business ventures.
“It’s crucial for the legal teams supporting these outbound enterprises to ensure compliance with both domestic regulations in China and the legal frameworks of their target countries. Additionally, they need to assist companies in adapting to the local cultural environment,” Zhang explained. She pointed out that cultural differences faced by Chinese firms overseas range beyond religious customs, encompassing work habits, lifestyle choices, and thinking patterns.
Chen Xingchang, founding partner of the Malaysian Jin Kui Law Firm, shared his own experiences that underline these cultural nuances. He illustrated, “In China, issuing an invoice is a common business practice. However, in Malaysia, a receipt serves the same function as an invoice. If Chinese enterprises fail to understand this distinction, it can lead to significant operational challenges.”
Chen further remarked that unlike legal rules which can be clarified through documents or case studies, cultural differences are more subtle and complex, making standardized responses inadequate. He advocated for lawyers from diverse cultural backgrounds to adopt an inclusive approach and collaborate closely, aiming to become “bridges for cultural communication.”
Tian Jian, a partner at Haihe Law Firm in Haikou, also reflected on the role of Chinese lawyers in the overseas expansion of Chinese enterprises. He emphasized that Chinese lawyers should act as managers and coordinators. “Our primary goal is to establish effective collaborative relationships with local institutions, law firms, and the business community, ensuring that Chinese companies can integrate smoothly into the local society and commercial landscape. This integration is not only legal but also entails a deep merging of cultural and business practices.”
