CHINA ESQUIRE

For those of you looking for quake information, please see the following:

“ More Ways to Help in the Aftermath of the Earthquake - UPDATED!” where I track reputable charities that are taking donations to help the quake victims.

“ Sichuan Quake Updates and Red Cross Donations - UPDATED!” where I track developments on Shanghaiist and other sources, for everyone’s benefit.

Check below this post for my latest content–I am posting again. I will keep this post on top though.

Not a surprise since I already did one post about how businesses are looking for investment (venture capital and private equity) opportunities in Asia, particularly China and India, as the U.S. economy sputters along. (see here) Well, this article entitled “The Changing Face of Private Equity” from CNN Money just reinforced that:

What a difference a year makes for private equity.

About this time last year, the industry was inking deals at a dizzying pace and raking in massive profits, making it the hottest game on Wall Street.

While private equity shops are still raising massive amounts of money, tight credit market conditions are forcing large buyout shops to rethink the business model that brought them so much success in years past.

As a result, the private equity heavyweights like Blackstone Group, the Carlyle Group and KKR are having to adapt.

For instance, since late last year, buyout firms have increasingly targeted smaller acquisitions, experts like David Brophy, a finance professor at the University of Michigan’s Ross School of Business, said.

At the same time, the big private equity players are increasingly scouring the globe for investment opportunities, said Paul Schnell, a partner in the U.S. and international mergers and acquisitions group at the law firm Skadden, Arps, Slate, Meagher & Flom LLP.

Firms like the Carlyle Group have ramped up staffing in emerging markets like India, China and Latin America as part of an industry-wide push to find companies with strong growth prospects, he said.

“Increasingly private equity funds are looking outside the U.S. because they are finding a lot of companies with much greater prospects of significant growth,” said Schnell. “They can do these deals with less leverage but with significant returns.”

This is goods news for the corporate lawyer folks (emerging companies, private equity, and M&A) doing international deals. Nothing new though. Expect to see more deals in the pipeline for your law firms in international law. And for the non-lawyers, expect to see more and more news in the headlines of this nature.

Today is another break from the usual law and business stuff because of the quake, and also, I just needed a day to relax. The BBC ran an article last week entitled “Wild times in changing China” that talks about the natural treasures of China’s environment. However, with the rural migration to the cities, it seems like rice paddies may get wiped out and greater industrialization will jeopardize the environment.

China is a country that in some peoples’ minds has become synonymous with industrial pollution, rigid political control and spectacular economic expansion.

But behind this image lies another world which is the real, essential China - a place of vast shifting deserts, tropical coral reefs, steaming jungles, snow-capped peaks, evergreen forests and smoking volcanoes.

And surviving, tucked away within this incredibly diverse landscape, is a wealth of animal and plant life.

China is home to 534 species of mammals - one eighth of the world’s total, of which more than a hundred, including iconic creatures such as the giant panda, are endemic.

The country’s birdlife is also extremely rich, with more than 1,300 species, whilst there are more than 2,200 species of fishes.

China’s plant life is equally spectacular, with an amazing 32,800 species of higher plants, making China the third richest country in these terms after Malaysia and Brazil.

Rural demands

Experts are forecasting that in the next couple of decades, more than 300 million rural people will migrate to China’s Eastern seaboard in search of better-paid jobs.

Traditional farming systems, like the terraced rice paddies which cover the hillsides of southern China, require a huge amount of manual labour for planting, upkeep and harvesting.

As wage levels rise, such work is bound to become uneconomic, and without intensive management, the paddies will not survive the annual onslaught of monsoon rains for long.

At the same time, pressures to increase food production to meet increasing demands from a growing urban population, and to cope with the effluent produced by massive industrialisation and vast urban conurbations, will inevitably pose serious environmental challenges.

I have a feeling this is a tragic, but rather inevitable part of a growing economy. Why else would America put so much focus on natural parks and wildlife preserves if industry didn’t wipe out large chunks of the environment? I am actually not much of an environmentalist, so don’t get me wrong here. I am not saying let’s go back to pre-historic, pre-industrial society like a Luddite. I am just making an observation that it’s bound to happen, but am somewhat sad that the beautiful landscapes of China may be threatened by this. I hope green tech reaches China early enough to make a dent on this problem. But we can never really be certain it will.

And for all those who are only interested in touring/visiting China, make sure to check out the natural scenery while it is still beautiful.

Again, I can’t get myself to post anything substantive because of the Sichuan earthquake and subsequent aftershocks. I have been trying to update my other posts. (see here and here)

On a positive note, China Esquire: Law and Business Blog was recently blogrolled at:

- Alltop, a new aggregator that has China and Legal sections
- Asiabizblog, a classic in Asia law and business which lists us as “China Law and Business”
- China Vortex, Paul Denglinger’s had some excellent postings on Chinese BBSes recently
- ImageThief, which should not need any introduction
- Silicon Hutong, a great source of information for China technology

UPDATE (5/15): China Law Blog, probably the classic China law blog (which I follow very closely), and Managing the Dragon, run by the well-regarded Jack Perkowski and others, have added China Esquire to their blogrolls as well.

I truly appreciate everyone’s support.

I had a post on PE ready to go, but I can’t bring myself to do it. This Sichuan quake, while it doesn’t compare to the Myanmar cyclone in terms of sheer cost of human life, has been on my mind too much. And so, I will keep on topic for another day. I apologize if you came expecting law and business advice, and feel cheated.

Rich Brubaker, from All Roads Lead to China (and his other blog, China Crossroads), recommended some other charities other than the one posted in the Shanghaiist. Here is his post:

I have emails out to several friends in local NGOs catering to smaller villages, but for now I suggest:

China Charity Foundation - Partner with Red Cross

China Foundation for Poverty Alleviation

Rich also defended the quality of the China Charity Foundation on China Law Blog under the comments:

GONGO’s in China have had a bad rap for a while - partly of their own doing - however, the Red Cross and its GONGO partner China Charity Foundation have a strong reputation and are honestly the best NGO at this point.

Ironically, a close friend of mine (native Chinese) commented that China’s government will also take good care of the people, and that while charities are great, the government will definitely do its part. I sure hope so. I am guessing that all you are hoping so as well. I will try to keep yesterday’s post (entitled “Sichuan Quake Updates and Red Cross Donations - UPDATED”, here) updated to mirror Shanghaiist on a regular basis during West Coast business hours.

UPDATE: Shanghaiist reports that there are blood drives happening in China later which could help:

May 24–Thumb Square, 199 Fangdian Rd, Pudong

May 27–Level B1, Hong Kong New World Tower,
300 Huaihai Middle Rd,Puxi

Jun 15–Thumb Square, 199 Fangdian Rd, Pudong

Jun 21–Dulwich College Shanghai, Jinqiao, 200 Lanan Rd, Pudong

UPDATE 2a: China Briefing recommends the international charity Care for Children (CFC) in China. The Care for Children website is www.careforchildren.com.cn. Rich Brubaker points out two new funds being run by CFC:

Care for Children Emergency fund;
Care for children will have a team in Chengdu from Monday to;
1. Distribute Emergency aid to our 11 orphanages in Sichuan
2. Manage and co-ordinate Trauma Counselling and Trauma Counselling Training for China Social Work Association
3. Two Lorries/Trucks are heading to Chengdu with aid from the international community’s of Beijing and Shanghai.

Reconstruction fund;
1. Care for Children will work with CSWA to construct a residential community centre in Wenchuan.
2. Care for Children will help with the reconstruction of orphanages, schools and communities effecting children we serve.
3. Care for Children will train local workers and future foster parents to take the orphans from the earthquake disaster.

Please mark all donations Earthquake Appeal

UPDATE 3 (5/14): World Vision set up a special China quake fund. Their announcement:

As the death toll from the 7.9-magnitude earthquake continues to rise, World Vision offices close to the epicenter have dispatched relief and assessment teams to provide immediate supplies, such as blankets and tents, to 10,000 people, with more supplies on the way. We are asking for an additional $1 million to support the initial response.

You can donate to World Vision here. This is one relief organization that is well regarded in the international sphere, and I have no trouble endorsing it.

UPDATE 4 (5/14): Rich Brubaker also mentioned there is a great need in orphanages out in Sichuan. He writes:

Our China adoption agency (CCAI) will route your donation directly to orphanages in the earthquake area. Type: ‘Earthquake Relief’ in the Specific Project line in the on-line donation form. As the largest China adoption agency in the US, CCAI has a long track record working with orphanages, an extensive network of representatives (including in Sichuan Province) and strong relations with the Chinese government. CCAI is a 501-3C charitable organization. I whole-heartedly endorse CCAI.
http://www.chinesechildren.org/Sichuan_earthquake.aspx

UPDATE 5 (5/14): The American Red Cross also has a China disaster fund set up here.

UPDATE 6 (5/15): China Children & Teenagers Fund (CCTF) website can be found here. From CN Reviews:

CCTF has formed a charity foundation for earthquake relief with with China Merchant Bank (CMB). Source from Sohu.

Account Name: China Children and Teenagers’ Fund
Bank Name: Bank of China, Head Office, Banking Department
Bank Address: No.1 Fuxingmennei Street, Xicheng District, Beijing, China
Account Number: 0005 8908 0910 14
SWIFT?BKCH CN BJ

UPDATE 7 (5/15): Samaritan’s Purse, run by Franklin Graham (son of famous crusader Billy Graham), has given $285,000 so far. Shanghaiist reports:

Looks like evangelist Franklin Graham who previously made the news in the China Daily for “hoping to do more for China” is seriously putting his money where his mouth is. Speaking from Shanghai after a tour of Beijing, Hangzhou and Nanjing, the CEO of the Billy Graham Evangelistic Association (named after his dad) and international Christian relief organization Samaritan’s Purse has just donated a whopping RMB2 million, or US$285,000. That’s a whole lot of money, ladies and gentlemen! To put things into perspective, even Singapore, which has one of the world’s highest GDP per capita, only managed a paltry US$200,000 or RMB1.4 million.

Samaritan’s purse is taking China quake donations here.

UPDATE 8 (5/16): Chengdu YMCA needs help according to China Crossroads:

I have receieved the 2 emails from the YMCA, who need assistance with putting roofs onto their facilities. If anyone can assist them, please reach out to Larry Lieving (llieving @ yahoo.com)

Please consider the YMCA of Chengdu as a possibility for your assistance.

Right now we need to get roofs on our buildings. We do not have rooms at the YMCA or the orphanage. We had to send the orphanage kids home. We need to do the roof as soon as possible and get the kids back. We do have a guest room at the orphanage which will be usable when the roof is on. Do you have volunteers that are roofers?

UPDATE 9 (5/17): I had this in my other post, but have moved it here to keep one post for updates and the other for donation sources. Here is how to donate to the Chinese Red Cross:

If for some reason this list isn’t enough, then CN Reviews has a very comprehensive list here. Again, the key is not more information, but to just give.

The Shanghaiist posted where the Chinese Red Cross is taking donations and constantly updating the blog with developments. It is also getting thoroughly hammered right now, so I wanted to post this information for all readers.

(I have a separate post that details many charitable organizations, and it is being updated regularly. Please click here if you are looking for other ways to donate to the relief efforts.)

I wanted to help people figure out what was going on with the quake. The Shanghaiist had started a separate post for the aftershocks that have occurred since the main earthquake.  Here it is:

A second earthquake measuring 6.1 on the Richter scale has hit Sichuan province, 24 hours after a 7.9 earthquake struck Wenchuan, 92km northwest of Chengdu. A quake of 5.0 magnitude was measured this morning at 7:19am at the epicentre and this afternoon at 15:07pm a 6.1 magnitude quake hit, hampering the ongoing rescue efforts in the region.

Latest estimates put the possible death toll at more than 10,000 although this figure looks set to rise given the remoteness of some of the areas hit. In the worst effected areas, numerous buildings have collapsed trapping people under the rubble. The mountainous terrain, as well as landslides and poor weather, are hampering the efforts of relief services to get to those in need. The Chinese Red Cross has appealed for donations to help with rescue efforts. Japan, Russia, Taiwan, and Germany have been amongst those who have offered assistance while the Li Ka Shing foundation has donated 30 million RMB and Carrefour 2 million RMB.

In Chengdu and Chongqing, numerous buildings were evacuated and people flooded the streets, with many unsure exactly what was happening. Fearing aftershocks and further earthquakes, some residents have spent the night in their cars or out in the open.

CCTV have just broadcast a live press conference from the State Council. In response to a question about official warnings on the internet before the earthquake hit, one official said, “Such speculation is unreasonable.”

UPDATE 1, 5:40PM Pictures of the earthquake devastation from the BBC and Yahoo.
More graphic pictures here. (WARNING: Some of the pictures are graphic in nature!)

UPDATE 2, 6:00PM The Times (UK) reports that 10,000 are dead while another 10,000 are feared missing or buried in the rubble. The Guardian has an interview with reporter Tania Branigan who describes the scene at the earthquake zone, “through the streets you see these enormous piles where buildings have collapsed”

UPDATE 3, 6:05PM The Times just revised those numbers to 12,000 dead, 5,000 more buried. APA say 60,000 are missing.

UPDATE 4, 7:30PM For you Beijingists: Sichuan Earthquake Benefit Concert, Mao Live House, Gulou Dong Dajie, BJ. Wed May 14th 8pm. 50RMB

UPDATE 5, 8:00PM The Guardian now has a video and a full written report from Tania Branigan who (as we mentioned earlier) is at the earthquake zone. She writes that many people’s anguish is quickly turning to anger, quoting one resident of Dujiangyan (where a school building has collapsed) as saying:

“These buildings outside have been here for 20 years and didn’t collapse - the school was only 10 years old. [Government officials] took the money from investment, so they took the lives of hundreds of kids. They have money for prostitutes and second wives but they don’t have money for our children. This is not a natural disaster - this is done by humans.”

UPDATE 6, 7:26AM The BBC is reporting that a group of 31 British tourists have turned up safe and well in Chengdu following a trip to the Wolong Panda Reserve. It is still unclear if this group is the same as the group of 19 British tourists previously reported missing in the area

UPDATE 7, 7:40AM Rescue teams have finally made it through to the epicentre of the earthquake this morning. The BBC reports that a few hundred soldiers and police have managed to get to the area despite adverse weather conditions and broken roads. “They found 500 bodies within a few hours - but have still not searched many devastated areas”. The report states that an estimated 60,000 people are still missing

UPDATE 8, 8:04AM The NY Times is saying that, despite protests from people within China and calls for it to be temporarily halted, the Olympic Torch relay will continue. It will, however, be scaled down according to a statement from the Beijing Organising Committee for the Olympic Games:

“As the entire nation directs efforts to the common purpose of helping the region recover from the disaster, BOCOG has decided, after consultations with Jiangxi and other provinces, that beginning with the relay in Jiangxi Province, it will simplify procedures, emphasize simplicity and efficiency while putting safety first during the relay. And prior to the start of the torch relay, all relay participants will observe one minute of silence to extend condolences to the victims of the tragedy. Donation boxes will be set up at the starting and finishing points and along the torch relay route to encourage people to help with the relief work.”

ADDED (5/15): Shanghaiist reports this positive news: Foreign workers have been allowed into the earthquake zone in this post:

UPDATE, 18:09 The first Japanese relief workers are expected to leave tonight. A group of 60 earthquake specialists together with sniffer dogs will head to Sichuan over the next few days. Meanwhile, the Chinese government has appealed for earth-moving equipment to aid rescue efforts in the region. Many relief workers are currently sifting through the rubble with their hands according to ABC News. The latest official death toll stands at 19,500 but is expected to rise sharply over the coming days.

ADDED (5/15): There is also a post that there are still fears that dams and nuclear sites may be damaged:

As we told you earlier, there had been very real fears that the Zipingba Dam, 6 miles upstream from the devastated city of Dujiangyan, was displaying “extremely dangerous” cracks. The People’s Daily is now reporting that the dam is “structurally stable and safe” following a full inspection.

Nevertheless, despite official reassurances, fears persist over other dam projects in the area with The Associated Press still reporting that hundreds of structures could be at risk.

“The National Development Reform Commission, China’s top economic planning body, said the earthquake had damaged 391 dams. It said two of the dams were large ones, 28 were medium-sized and the rest were small ones.”

Landslides have reportedly caused rivers to be blocked in Qingchuan County, creating an enormous lake, with Xinhua quoting Li Hao, the county’s Communist Party chief, as saying: “The rising water could cause the mountains to collapse. We desperately need geological experts to carry out tests and fix a rescue plan”. As the International Herald Tribune points out, “much depends on efforts to reduce the menacing pressure of water behind the dam walls”, if further disaster is to be averted.

ADDED (5/16):  The Shanghaiist has slowed its updates on the quake, but CNN and Xinhua have not.  Here is the latest from CNN:

A spokesman for the Chinese Embassy in Washington said Friday that a devastating earthquake in southwest China destroyed or heavily damaged 436,000 properties leading to 4.8 million homeless, according to official figures.

The suffering of Sichuan’s inhabitants has been prolonged by repeated aftershocks, some 4,400 since the quake hit, according to Baodong.

The latest aftershock hit quake-damaged areas Friday, triggering landslides, blocking roads, knocking out phone lines and burying vehicles, state-run media reported.

The 5.5-magnitude earthquake rattled Sichuan shortly after President Hu Jintao arrived in the quake zone to get a first-hand look at the devastated region.

As frantic search-and-rescue efforts entered a fifth day, the official death toll issued by authorities in Sichuan Province now stood at 22,069, with 14,000 still buried, 159,000 injured and 4.8 million homeless, according to China’s Xinhua state news agency. China’s state council said Thursday that the number of dead could eventually top 50,000.

I had to highlight the numbers…  this is a breathtaking amount of destruction.  Stay tuned for more.

I have been doing some posts about networking and being able to practice law (unofficially) in China. Well, the Star had an interesting article entitled, “Practising law a risky endeavour in China”. Sure, it involves lawyers who end up taking controversial cases, but I thought it was worth highlighting because the rule of law is not yet established in China, and that is something to consider before you work out there. For example, if you want to be a public interest lawyer, you should be forewarned that there might be some headache and heartache involved.

Here’s the article:

One fine fall afternoon last year, Li Heping was making his way towards a newspaper kiosk not far from his office when a man approached, grabbed him by the arm and said sternly, “Come with me.”

In a matter of seconds, Li had a cloth sack pulled over his head, he was wrestled into a car and driven to the outskirts of town where he was brought down into a basement and beaten.

Li is a lawyer – a partner in the respected Beijing Globe Law Firm.

“They were slapping me about the head, pulling me by the hair and striking me with electrical batons.

“They were yelling, `Sell your house, sell your car and get the hell out of Beijing!’”

Towards midnight, he was bundled back into the car and dumped in a forested area, from which he eventually made his way home.

I would’ve expected that business lawyers would be exempt from this sort of bullying. Well, what did Li actually do?

He’s among a select group of lawyers in China who dare to take on politically sensitive cases.

Li is one of 49 human rights lawyers interviewed for a report released today by Human Rights Watch entitled, “Walking on Thin Ice: Control, Intimidation and Harassment of Lawyers in China.”

Part of me is cynical and thinks that this is part of the territory. But part of me also recognizes that the rule of law, building such a thing into a country that does not really have it firmly established, will involve these sort of personal costs.

Senior government officials routinely proclaim China to be a country of “the rule of law.” Even President Hu Jintao, at the 17th Communist Party Congress last year, stressed “the rule of law constitutes the essential requirement of socialist democracy.”

But many observers see China as a country of “the rule by law” – the law being an instrument that remains largely in the hands of the government.

As a consequence, it remains risky for lawyers to take on certain cases.

“Abuses of lawyers compound human rights violations,” says Sophie Richardson, Human Rights Watch’s Asia advocacy director. “Without due process and genuine defence rights, law remains little more than an instrument of state repression.”

I’ve heard of substance abuse, but lawyer abuse? Interesting.

Two things. First, this should not discourage you from wanting to be a lawyer in China. It shouldn’t really. The rule of law is still marching forward, albeit slowly. But it should make you think about what your motivations are. If you want to be a lawyer in China to change the government and the system, you might actually accomplish that. But there is a high price to pay and you better know that. You also better know that it might not happen in your life time. I am not anti-public interest. But I am opposed to public interest types thinking that they can be aggressive in America, and then just waltz into China and be aggressive there too. Don’t be naive.

In general, I don’t think this applies to most of us who want to practice business law in China. The actions and motivations of someone like that is probably going to be a little different than a crusader.

Second, if you do end up out there as a lawyer, even as a business lawyer, it does not mean you are suddenly immune. You choose your cases. Well, you also choose your causes. And if you insist on choosing causes that the government doesn’t like, just be ready if intimidation comes knocking on your door.

Bottom line: use your head.

Review time again as usual. Most interesting business article for the week comes from Seeking Alpha entitled “Progress or Pipe Dreams? Private Equity / Venture Capital in China.” ( h/t to China Law Blog) Well, its not really an article: it is a panel discussion from some people who know the industry better than most others. Here is what Dan Harris at China Law Blog said:

Project Alpha just posted the transcript from a very enlightening panel discussion on private equity/venture capital in China. The discussion was at JP Morgan’s recent China conference in Beijing. I attended this discussion and found it very informative.

Shaun Rein (Managing Director, China Market Research Group) did an excellent job moderating the discussion between Robert Theleen (CEO, ChinaVest); Joel Kellman (Managing Partner, Granite Global Ventures), and Brandon Lin (Partner, SAIF Partners).

If Dan thinks its a must-read, it probably is. Here are some excerpts I found interesting from the discussion:

Bob Theleen: At local, municipal and regional level, government is very much supportive of the PE industry. At national level things become more complex for the reasons you mention.

On the other hand the contradiction is there is not a mayor or a governor that I have ever met that does not say, my city needs capital; it needs growth capital and I want to support local entrepreneurs. Since the covenant of Beijing with regional government is you are more on your own, that regional government has to fend for itself. I think you will find that contradiction, that Beijing has to accommodate local government and it has to accommodate and support the PE industry, but how do you separate that out from issues like controlling the aggregate capital in a high-inflation market? That is a problem that China faces.

* * *

Shaun Rein: Is it hard right now for entrepreneurs to get capital?

Bob Theleen: I think it is very hard. It is harder because of credit tightening.

The good news is that our regional city banks are providing more and more debt. The aggregate savings of China, pools of RMB are accessible today through trust companies, through other financing sources. But that is an important component of making all of those kinds of business strategies effective.

Good stuff and worth a read. It reads pretty quickly.

CNN World Business ran an article this past week that states that food exports have dropped by 30% to Japan, which is a key market for Chinese food products.  I am not sure that I actually feel too badly for China in this case, but let me explain after the article:

China’s food exports to Japan, a key market, plunged 30 percent in February, hurt by a scare over poisoned Chinese-made dumplings, according to data reported Friday.

Japan is the third-largest market for Chinese exporters of fish, dumplings and other processed food, and the drop in sales is a severe blow to the fast-growing industry.

China’s food exports to Japan in February totaled 186,000 tons, down 30 percent from the same month in 2007, the General Administration of Customs reported.

Exports from Shandong, the eastern province that is the base for food processors serving Japan, fell 60 percent, the official Xinhua News Agency said.

“Influenced by such things as the `poisoned dumpling incident,’ our country’s food exports to Japan fell one after the other,” said a customs agency statement.

Chinese-made dumplings were pulled from Japanese supermarkets in December after traces of a banned insecticide were found in the dumplings and in the vomit of people who fell ill after eating them.

Bad Chinese products are nothing new.  And it is not all too surprising considering that China is become the world’s manufacturer, not just America’s sourcing base.  And as expected, there are issues of quality fade, lack of quality control, and lack of repeat due diligence.  So sometimes I actually think its a miracle that there aren’t more Chinese products issues on a regular basis.  Thankfully, most issues are not lethal, like the glycerin that Panama bought some time back for cough syrup.

But why do I say that China has no one to blame but itself?  Because it often takes the stance that it’s importing country’s responsibility to check out product issues, not the exporter’s.  The Chinese SFDA did that when it came with pharmaceuticals here (and I covered this topic in this post):

But the SFDA said that based on international practice, “safeguarding the legality, safety and quality of raw materials imported for use in pharmaceuticals is the responsibility of the importing country.”

This was the official policy regarding pharmaceuticals, so I know it’s not quite the same thing.  But it is my belief that this has been China’s stance toward food and other exported products as well.  Here was China’s response:

Chinese authorities say their investigation has found the poisoning probably was an isolated, deliberate case. They say there is little chance it happened in China and have accused Japanese police of failing to cooperate with them.

Sure, but if China is trying to implement domestic food safety standards, then it must know that there are food export issues as well.  As long as the government refuses to tackle this issue head on, and expend some serious capital and resources to deal with it, then China really has no one to blame if Japan or other countries decide to start consuming less food products from China.  That’s pretty logical actually.  And I am not trying to be cruel.  In the end, China can only blame itself if the market for Chinese exports, particularly food exports, drops.

This is a good opportunity for the government to get involved in regulating its exports.  It doesn’t need to massively regulate.  But more regulation, though costly, will be welcome.  And ultimately, it may cost China less if other countries can learn to trust Chinese exports again.

The Institute for International and Comparative Law is hosting their Annual Symposium: International Mergers & Acquisitions - Strategies and Trends. This two day program takes place in Plano, Texas, on June 17-18. Both days are packed with programs, as can be seen here. Of particular note are some of the sessions, which cover a lot of topics:

A Case Study of a Cross-Border M&A (3 parts and nearly all of one day to present!)

Practical Problems and Guidance for a Cross Border M&A

Best Practices and Worst Mistakes Made by Foreigners in Brazil, India, Russia, U.S. and Venezuela

General Counsels’ Roundtable on M&A Issues

Pitfalls and Disputes in Multi-Jurisdictional M&A Transaction

You can even register online here.

I have been hammering the fact that Chinese IPR enforcement–the protection of various sorts of intellectual property like patents and trademarks–has been getting better and better.  Statistics are powerful, and I don’t think these are any different.  The Economist recently did an article called “850,000 lawsuits in the Making” ( h/t Rich Brubaker at All Roads), which reads:

Since 2003 the number of trademark applications has grown by 60%; the number of patents has nearly doubled (850,000 are now active) and the number of lawsuits about intellectual property has more than doubled (see chart). The government is encouraging the trend in many ways, including signalling to the press to cheer it on.

This enthusiasm marks a dramatic change. During the Maoist era, private property of any kind was seen as theft from the masses, and so subject to just expropriation. Only in 1985 did China begin to enact laws to protect patents. It did not enforce them much until 2001, when the authorities promised to crack down in order to win admission to the World Trade Organisation.

China has since opened more than 50 courts that deal solely with intellectual-property cases, and Chinese firms are using them. Prominent litigants include a pram manufacturer protecting designs, a soya-milk producer defending an industrial process and a maker of Chinese medicines shielding a name that, roughly translated, means “mind and blood purge”.

Again, very encouraging numbers.  50 specialty courts that deal with IP?  That’s fantastic.  Sure, they are not all up to par with the Federal Circuit Court of Appeals, but I cannot complain.  Chinese judiciary specializing in IP and learning how to deal with these sorts of cases is a good thing.

As companies in China establish brands and develop products, the incentive to sue will grow, particularly because the cost of bringing a case is minimal. “If you can afford a car, you can afford a lawsuit,” says Tony Chen, who works in the Shanghai office of Jones Day, an international law firm.

In America, firms often settle intellectual-property cases out of court for fear of enormous awards by juries. That is not true in China, Mr Chen says, where a judge rules in the majority of cases and damages tend to be small. They normally cover legal costs, however, turning lawsuits into a self-funding method to battle piracy.

Well, perhaps there is an argument to be made for the British system…  that being a tangent, the British winner-takes-all approach will only allow the rule of law to grow in the early stages of IPR enforcement.  Maybe later it can hurt, but for now, including damages into legal costs will encourage more and more companies to turn to the courts for IP remedies.  That is a good thing.  Few things encourage the rule of law such as the general citizenship of a country embracing lawsuits.  And if Chinese companies can embrace them wholeheartedly, then perhaps the Chinese people will finally be able to as well.

Unsurprisingly, the main beneficiaries of the sudden interest in intellectual property are Chinese lawyers. Some reportedly earn more than $5m a year. Non-Chinese law firms sometimes provide advice on thorny cases. But they are not allowed to file patents or appear in court on behalf of a client—a proprietary process that Chinese lawyers are keen to defend.

Yes, there is a silver lining in the advancement of the rule of law: it’s that the lawyers profit most.  I guess I can’t complain.  But yes, someone will have to profit off of this sort of growth.  For most people, that’s an unfortunate fact.  But it’s a fact of life.  The more that law becomes integral to Chinese society, the more lawyers will become more important.  That’s an already established fact in America–much as lawyers are hated, they are also necessary to the functioning of everyday business.  Expect the same in China.

So onward rule of law!  Just make sure your coattails are long enough for the lawyers…

This is sort of a follow up on my previous post about networking tips for law students (see here), hence the title, but also in response to the fact that blogging made the cover of the California Lawyer Magazine this month. I found the main article to be a re-hash of most such articles because of the content:

• lawyer blogging is booming (a 3500% jump in 5 years, which is no surprise)
• attorneys have many reasons to blog: to build a reputation in a specialty, attract clients, monitoring a legal niche, starting a conversation with a community of interest, etc. (common sense, no surprise again)
• the downside of blogging (lawyers are often technophobes and trolls are annoying, nothing new)
• future of blogging (no real information, just some pretty lame speculation)

However, the magazine provided 7 tips for blogging. Since I had counseled law students to learn about blogging and start their own blogs (or join the staff of a blog which has multiple authors like Transnational Law Blog), I thought I would put up some excerpts of the tips:

1. THINK GLOBALLY
In blogging, even though it feels like you’re sharing your thoughts with an intimate circle of friends, remember that millions of Internet users around the world will be able to read-and react to-what you’ve written.

This is even more important if you are taking on an international niche–then you really do need to think globally.

2. MANAGE YOUR READING REQUIREMENTS
Everyone already has too much to read, and the popularity of blogs is an added burden. But to be a well-regarded blogger, you really need to keep up with what fellow bloggers are saying. “Blogs act as funnels,” says Kevin O’Keefe, president of Seattle consulting firm LexBlog. “It’s like you have an intelligence agent that puts things in perspective for you.”

It is possible to follow a dozen or two dozen blogs without taking too much time if you have RSS or a standard bookmark list that you check once or twice a day. No need to keep on reading a blog over and over because there will be new stuff eventually.

3. KEEP IT CIVIL
If you wind up in a heated online spat but aren’t familiar with the tone and behavior expected in the blogosphere, resist the urge to respond immediately.

4. JOIN THE CONVERSATION (BUT IGNORE THE TROLLS)
When someone blogs misinformation about you, your firm, or an issue you are involved in, you should go ahead and set the record straight online. “The remedy for false speech is more speech,” says JoAnne Speers, executive director and ethics program director of the Institute for Local Government in Sacramento.  However, if you encounter a rabid, screaming, and pertinacious blogger-often referred to as a troll-you might want to hang back.

Just common sense, though I slightly disagree with #4. One thing is that when “trolls” abound, in general, just let them be. That usually works well. It’s the debate that will keep them coming back. No debate, moderate their comments, and you will be just fine.

5. FOLLOW OFFLINE RULES ONLINE
For the most part, you can avoid getting in hot water while blogging. “Use the same standard of ethics and decorum that applies to any medium,” including a person-to-person conversation, Speers advises.

Remember you are a professional. If you are a to-be lawyer, what you say will be remembered by the lawyer blog community. It’s a small community. So be professional always.

6. ABANDON ANONYMITY
Although it may be tempting to launch an anonymous blog in which you can speak freely, keep in mind that anonymous bloggers rarely stay anonymous. “Eventually, you are going to get found out,” says Kristie D. Prinz, founder of the California Biotech Law Blog. Howell agrees. “It’s not that difficult to figure out who someone is,” she says. Just ask Rick Frenkel, a lawyer at Cisco Systems. Shortly after his anonymous blog-Patent Troll Tracker-was outed this year, two Texas patent attorneys sued Frenkel and Cisco for defamation. Cisco has since revised its blog policy.

As a law student, I think this is a definite must. You need to be known in the community, and anonymity will hurt you. Of course, this assumes you are writing an informative blog and not something like Anonymous Lawyer (by Jeremy Blachman I believe).

7. SPEAK FOR YOURSELF
A blog is not the place for corporate blather or marketing blasts-it’s a place of personality. Keep that in mind as you write, suggests J. Craig Williams, a Newport Beachbased litigator. “Blogging by committee is bland and dry,” he says. “What makes blogging successful is voice. The most important thing is to be yourself.”

I also disagree with #7. Some blogs do it quite well, so I don’t think that’s a reason to stay away from group blogs. You can still develop your personal voice in a committee blog, especially when your partners aren’t going to heavily edit your work.

I hope this helps!