Law firms work on ways to mitigate stakeholders’ risk in belt-road cross-border deals
Legal advisers need to take into account several factors when helping investors overcome challenges resulting from multijurisdictional dealings
China continues with its ambitious drive to cement its position as a global economic leader, and the one belt, one road initiative is testament to that aim.
The business potential of the initiative appears to be huge and global law firms are preparing to handle the legal aspects of large infrastructure projects over the next decade.
Cledan Mandri-Perrot, a public-private partnership specialist and lead finance officer at the World Bank, said in a World Bank report that policies related to the initiative should prioritise improving regional and cross-regional trade, which is one of the initiative’s main goals.
Carolyn Dong, foreign legal consultant at global law firm DLA Piper, says investors would have to collaborate with the private legal sector in order to enforce due diligence and reduce risk for stakeholders involved in future belt-road projects.
It has been three years since President Xi Jinping first introduced China’s bold new development strategy to boost the country’s economic might. The ambitious infrastructure and economic project involves more than 60 countries – and creates many complex challenges.
As far as policy is concerned, Chinese regulators have brought forth an additional set of guidelines following China’s March 2015 Visions and Actions Plan, which relays the initiative’s strategy in support of present and prospective stakeholders. These guidelines included the development and improvement of tax services in relation to the one belt, one road initiative, and further supporting measures are planned by the Ministry of Transport.