[Federal Register Volume 78, Number 67 (Monday, April 8, 2013)]
[Notices]
[Pages 20893-20896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-08091]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
Legal Services Trade Mission to China, September 16-18, 2013
AGENCY: International Trade Administration, Department of Commerce.
ACTION: Notice.
-----------------------------------------------------------------------
Mission Description
The General Counsel of the United States Department of Commerce
will lead a Legal Services Trade Mission to China, September 16-18,
2013. The purpose of the mission is to introduce U.S. law firms \1\
without a presence in China to the Chinese market, to market U.S. legal
services to Chinese companies and individuals, to raise awareness about
the U.S. legal and business climate to Chinese companies interested in
doing business in the U.S. market, and to further an ongoing dialogue
with Chinese authorities on opening the Chinese legal services market
to expanded practice by U.S. firms.
---------------------------------------------------------------------------
\1\ For purposes of this trade mission, a ``U.S. law firm'' is
defined as a law firm that is formed under the laws of a U.S. state
or the District of Columbia and with its principal place of business
in the United States.
---------------------------------------------------------------------------
The trade mission will include stops in Beijing and Shanghai. In
both cities, participants will receive market briefings to obtain key
information from U.S. officials on the legal services environment in
China. They will then participate in specially-tailored forums on U.S.
legal services for audiences of Chinese persons seeking to do business
in the United States and others seeking legal services in China and the
United States. In addition, the trade mission will include
opportunities for participants to have policy discussions with Chinese
government officials in order to learn more about the regulatory
landscape and present the benefits that U.S. law firms can provide to
Chinese and U.S. companies. Joining the official U.S. Department of
Commerce Trade Mission will enhance the participants' ability to engage
in such meetings, which can be difficult to obtain when not accompanied
by government officials. In addition to U.S. law firms, bar
associations and other organizations that represent U.S. legal service
providers are encouraged to apply.
Commercial Setting
As China seeks to transition from a manufacturing, export-based
economy to a center of international business and finance, its need for
sophisticated multinational legal and financial services is growing.
Illustrating this trend, more than 200 foreign law firms currently have
a presence in China.
In China, foreign lawyers are permitted to: provide clients with
counsel with respect to the laws of the countries where they are
qualified to practice and on international conventions and
international practices; handle legal affairs in the country where the
lawyers are qualified to practice law when entrusted to do so by their
clients or Chinese law firms; entrust, on behalf of foreign clients,
Chinese law firms to provide counsel on Chinese legal affairs; enter
into contracts to maintain entrustment relationships with Chinese law
firms; and provide their clients with information about the impact of
the Chinese legal environment.
Within this rubric, opportunities exist for U.S. law firms
providing legal services in China in a number of practice areas,
including capital markets, mergers and acquisitions, international
trade, inbound and outbound investment, shipping, intellectual property
rights, arbitration,\2\ life sciences, real estate, information
technology and e-commerce, labor and employment, private equity, and
venture capital.
---------------------------------------------------------------------------
\2\ Generally, foreign lawyers may represent clients in
international or foreign-relation arbitral proceedings before the
China International Economic and Trade Arbitration Commission
(CIETAC) that do not involve Chinese legal affairs. Recent
amendments to the rules that govern CIETAC permit arbitration before
CIETAC to be held in languages other than Chinese.
---------------------------------------------------------------------------
The trade mission will also present opportunities for participants
to engage with Chinese individuals, private companies, and state-owned
enterprises, particularly those seeking to do business in the United
States. Depending on the type of business, Chinese companies doing
business in the United States could require legal services on United
States laws for issues relating to taxation, employment, corporate
finance, real estate, litigation, sale of goods, intellectual property
rights,
[[Page 20894]]
customs and international trade, export controls, foreign corrupt
practices, investment, and cross-border data flows, and many other
legal practice areas.
Beijing
As the national capital, Beijing is the locus of China's central
governmental authorities and provides an excellent base of operations
for U.S. law firms entering the Chinese legal services market. The
municipal government is promoting development in Beijing's high-
technology and financial services sectors. Beijing's economic growth is
primarily driven by the services sector, led by its financial services,
tourism, healthcare, and IT sectors.
Beijing is an attractive location for U.S. law firms seeking
clients who need legal advice on investing in and exporting to China.
In 2009, Beijing municipal authorities unveiled financial incentives,
including subsidies and tax breaks, for multinational companies that
locate their regional headquarters in Beijing. In 2011, companies in
Beijing received $2.9 billion in venture-capital financing, largely
focused on the IT industry; this represented 40 percent of the national
total and was more than twice the amount of venture-capital financing
in Shanghai, China's second-largest destination for venture capital.
Beijing is also set to benefit from $317 billion earmarked by the
central government for investment in IT through 2015.
Shanghai
While Shanghai has long been considered China's commercial and
financial capital, in 2009 China's State Council sought to advance
Shanghai's position in the global economy by issuing an official
blueprint for Shanghai to become an international financial and
shipping center by 2020, on par with Hong Kong, New York, and London.
The development of professional services, including legal services, is
a key aspect of this blueprint.
Shanghai, by many economic indicators the largest economy of all
cities in China, is an attractive market for U.S. law firms seeking
business or expansion opportunities in China. Municipal government
authorities reported that foreign direct investment in Shanghai reached
$15.19 billion in 2012, up 20.5 percent from the previous year. The
Shanghai Stock Exchange is the world's sixth largest in terms of trade
value ($3.7 billion) and market capitalization ($2.4 billion), and
experts expect initial public offerings in greater China (including the
Hong Kong, Shenzhen, and Shanghai Stock Exchanges, which accounted for
40 percent of all IPO funds raised worldwide in 2011) to increase over
the coming years.
More than 380 multinational companies have set up regional
headquarters in Shanghai. This city has the highest percentage of
foreign residents in China, with nine out of every 1,000 people coming
from abroad. Income levels in Shanghai are among the highest in the
country, exceeding those in Beijing, and its infrastructure is one of
the most advanced in China.
Mission Scenario \3\
---------------------------------------------------------------------------
\3\ Mission Scenario events are subject to change based on
availability.
---------------------------------------------------------------------------
The mission will start in Beijing on Tuesday morning when U.S.
Embassy officials will provide an overview of the Beijing political,
economic and commercial environment, with a particular focus on market-
entry rules and requirements and potential opportunities for foreign
legal services providers in China. Following this market briefing, the
trade mission participants will meet throughout the day with relevant
authorities responsible for regulating legal services in China. Tuesday
will conclude with a dinner and reception, to which the U.S. Ambassador
to China will be invited.
On Wednesday, the U.S. Department of Commerce will host a forum on
doing business in the United States specifically tailored to the
expressed strengths and goals of the trade mission participants, during
which the participants will have an opportunity to network with Chinese
businesspersons who have expressed an interest in doing business in the
United States and Chinese law firms interested in partnering with U.S.
law firms. Wednesday afternoon, participants have the option to meet
with their legal industry counterparts, likely including a Beijing-
based bar association. Alternatively, participants may conduct follow-
up meetings. The mission will travel to Shanghai on Wednesday night.
On Thursday morning, senior U.S. Consulate officials will provide
mission participants with a Country Team Briefing, which will provide
participants with an overview of the political, economic and commercial
environment in Shanghai. The group will then meet key government
authorities, likely including Shanghai municipal officials responsible
for regulating legal services, and legal industry counterparts possibly
to include the AmCham Legal Committee and a Shanghai-based bar
association. Thursday afternoon, the U.S. Department of Commerce will
host a forum on doing business in the United States specifically
tailored to the expressed strengths and goals of the trade mission
participants, during which the participants will have an opportunity to
network with Chinese businesspersons who have expressed an interested
in doing business in the United States and Chinese law firms interested
in partnering with U.S. law firms. Participants may conduct follow-up
meetings late Thursday afternoon. The day's events will conclude with a
no-host or on-own dinner.
Trade mission participants will be counseled before and after the
mission by Commerce staff. Participation in the mission will include
the following:
Pre-travel briefings on subjects relevant to the mission,
for example business practices in China and personal security;
Pre-scheduled meetings with government officials and
representatives of the Chinese legal community;
Transfers to and from airports and hotels in Beijing and
Shanghai; and
Networking receptions in Beijing and Shanghai.
Following the trade mission, participants are encouraged to
consider utilizing additional for-fee services offered by the U.S.
Department of Commerce's Commercial Service while in China to pursue
additional opportunities in any of the mission cities or other cities
throughout China. The Commercial Service offers a full range of export
assistance services, including single company promotions and tailored
matchmaking appointments and meetings (additional fees will be charged,
and participants should arrange for such services in advance).
Proposed Timetable
------------------------------------------------------------------------
------------------------------------------------------------------------
Sunday, 9.15.2013................. Afternoon
Arrive Beijing.
Monday, 9.16.2013................. Morning
Breakfast meeting with U.S.
Embassy officials.
[[Page 20895]]
Meeting with relevant PRC/
municipal officials.
Afternoon
Meeting with relevant PRC/
municipal officials.
Evening
Dinner and reception.
Tuesday, 9.17.2013................ Morning
Forum on doing business in the
United States.
Networking with Chinese
businesspersons, law firms and
other potential business
partners.
Afternoon
Meeting with Chinese bar
association OR
Opportunity for U.S. firms to
conduct follow-up meetings.
Evening
Travel to Shanghai.
Wednesday, 9.18.2013.............. Morning
Shanghai Consulate Briefing.
Meeting with Shanghai (municipal-
level) officials.
Lunch meeting with Shanghai bar
association OR
AmCham Legal Committee.
Afternoon
Forum on doing business in the
United States.
Networking with Chinese
businesspersons, law firms and
other potential business
partners.
Evening
No-host or On-own Dinner; mission
concludes.
------------------------------------------------------------------------
Participation Requirements
All parties interested in participating in the trade mission must
complete and submit an application package for consideration by the
U.S. Department of Commerce. Applicants will be evaluated on their
ability to meet certain conditions and best satisfy the selection
criteria as provided in detail below.
Fees and Expenses
Applicants selected to participate on the mission will be required
to pay a participation fee of $4,300 to the U.S. Department of
Commerce. Applicants that qualify as small or medium-sized enterprises
(SME),\4\ and bar associations and other trade organizations, will pay
a reduced participation fee of $4,000. The fee for each additional
representative (for both large and small entities) is $800. After the
mission, participants will have the opportunity to participate in
matchmaking and other Commercial Service export assistance services in
Beijing, Shanghai, or elsewhere in China; additional fees will be
charged for such services.
---------------------------------------------------------------------------
\4\ A legal services SME is defined as a law office or other
provider of legal services with a maximum of $10 million in average
annual receipts, or that otherwise qualifies as a small business
under Small Business Administration (SBA) regulations (see http://www.sba.gov/services/contractingopportunities/sizestandardstopics/index.html). Parent companies, affiliates, and subsidiaries will be
considered when determining business size. The dual pricing reflects
the Commercial Service's user fee schedule that became effective May
1, 2008 (see http://www.export.gov/newsletter/march2008/initiatives.html for additional information).
---------------------------------------------------------------------------
Exclusions
The mission fee does not include any personal travel expenses such
as air transportation, lodging, most meals, and local ground
transportation (transportation to and from airports in China and to and
from meetings on the trade mission agenda will be provided).
Participants will be able to take advantage of U.S. Government rates
for hotel rooms. Participants will be required to obtain business
visas, and Chinese fees and other processing expenses to obtain such
visas are not included in the mission costs. The Department of Commerce
will provide instructions to each participant on the procedures
required to obtain necessary business visas.
Conditions For Participation
Applicants must submit a completed and signed trade mission
application and supplemental application materials, including adequate
information on the applicant's services, primary market objectives, and
goals for participation. If the Department of Commerce receives an
incomplete application, we may reject the application, request
additional information/clarification, or otherwise take the lack of
information into account when evaluating the applications.
In question 11 of the trade mission application, each applicant is
asked to certify that the services it seeks to export as a result of
the trade mission are either produced in the United States, or, if not,
are marketed under the name of a U.S. firm and have at least fifty-one
percent U.S. content. If applicants find this requirement difficult to
meet, or are unsure of whether they can certify this, we encourage them
to indicate on the application form why the applicant firm's services
should be considered for promotion during the mission, including how
the firm's goals and objectives are consistent with the purpose of the
mission.
In the case of a bar association or other trade organization, the
applicant must certify that as part of its activities in this trade
mission, it will represent the interests of members meeting the
criteria discussed in the previous paragraph or provide an explanation
of the type described in the previous paragraph.
In addition, as part of the trade mission application each
applicant must:
Certify that the services that it wishes to market through
the mission would be in compliance with U.S. export controls and
regulations;
Certify that it has identified to the Department of
Commerce for its evaluation any business pending before the Department
that may present the appearance of a conflict of interest;
Certify that it has identified any pending litigation
(including any administrative proceedings) to which it is a party that
involves the Department of Commerce; and
Certify that it and its affiliates (1) have not and will
not engage in the bribery of foreign officials in connection with a
company's/participant's involvement in this mission, and (2) maintain
and enforce a policy that prohibits the bribery of foreign officials.
Selection Criteria for Participation
The Department of Commerce intends to select 15 applicants to
participate in
[[Page 20896]]
the trade mission. A minimum of 13 and maximum of 17 applicants will be
selected to participate. In the event that fewer than 13 applicants are
selected, Commerce may carry out the mission with the applicants it has
selected; cancel the mission; or postpone it. Targeted mission
participants include: U.S. law firms that have an interest in entering
or expanding their business in the Chinese legal services market, or in
providing legal services to Chinese companies or individuals in the
U.S. market; and bar associations or other trade organizations that
represent U.S. legal service providers that have such interests. The
following criteria will be evaluated in selecting participants:
Suitability of the applicant firm's (or in the case of an
applicant bar association or other trade organization, represented
legal service providers') services to the Chinese market, with respect
either to providing services in China or legal services to Chinese
companies in the United States.
Applicant firm's (or in the case of an applicant bar
association or other trade organization, represented legal service
providers') potential for business in China, including likelihood of
U.S. services exports resulting from the mission.
Consistency of the applicant firm's (or in the case of a
bar association or other trade organization, represented legal service
providers') goals and objectives with the scope of the mission.
The Department of Commerce may also consider factors related to the
designated representative that will participate in the mission on
behalf of the applicant, including: his/her practice area and level of
seniority; his/her experience conducting business in China; any
experience opening a foreign law office; and whether he/she is admitted
to practice law in the United States. As the Department is seeking a
diverse group of participants, the size, location, and areas of
expertise of the applicant may also be considered.
Referrals from political organizations and any documents, including
the application, containing references to partisan political activities
(including political contributions) will be removed from an applicant's
submission and not considered during the selection process.
Timeframe for Recruitment and Application
Mission recruitment will be conducted in an open and public manner,
including publication in the Federal Register, posting on the Commerce
Department trade mission calendar (http://www.export.gov/trademissions)
and other Internet Web sites, press releases to general and trade
media, direct mail, broadcast fax, notices by industry trade
associations and other multiplier groups, and publicity at industry
meetings, symposia, conferences, and trade shows.
Recruitment for this mission will begin immediately and conclude no
later than August 16, 2013. The Department of Commerce will review
applications and make selection decisions on a rolling basis beginning
April 15, 2013 until the maximum number of participants is selected.
Applications received after August 16, 2013 will be considered only if
space and scheduling constraints permit.
Contacts
U.S. Department of Commerce, U.S. and Foreign Commercial Service
David McCormack, U.S. Commercial Service, Washington, DC, Tel:
202.482.2833, Email: david.mccormack@trade.gov.
U.S. Department of Commerce, Office of General Counsel
Brett Gerson, Attorney-Advisor, Office of the Chief Counsel for
International Commerce, Washington, DC, Tel: 202.482.5595, Email:
bgerson@doc.gov.
U.S. Embassy--Beijing
Mark A. Lewis, Commercial Officer, (t) 8610-8531-3280, (f) 8610-
8531-3701, mark.lewis@trade.gov.
Elnora Moye,
Trade Program Assistant.
[FR Doc. 2013-08091 Filed 4-5-13; 8:45 am]
BILLING CODE 3510-FP-P