Facing up to in-house problems

An academic at a new research centre describes some of the unique challenges facing Chinese corporate counsel

With the growing maturity of a market economy and continuing improvements to China’s legal system, the importance of law to Chinese companies is increasingly apparent and legal affairs management has certainly caught the attention of companies’ senior management.

In recent years, legal affairs management has made major progress under the guidance of the State Assets Supervision and Administration Commission and other institutions. However, in general, legal affairs management within Chinese companies is still in the development stages and Chinese corporate counsel are facing many challenges. Some of the main challenges are:

1. The focus level of legal affairs management is still not high enough and management of legal affairs is not clearly differentiated from the professional handling of specialised legal matters. As a result, Chinese companies are used to dealing with corporate legal matters in a technical and operational manner, and are not able to handle corporate legal matters from a strategic and management perspective.

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   Ye Xiaozhong is director of the China Research Centre of Corporate Legal Affairs Management, established by the Business School of the China University of Political Science and Law