EU puts pressure on China over law firm restrictions

Date: 06/02/1997

By Elizabeth Wise

EU MEMBER states may swear by their single market, but it does not cut much ice with the world's most populous country.

In fact, China ignores it altogether.

Inside the EU, a British law firm may have Belgian or French partners. But those partners will not be able to work in the company's office in China, according to European Commission officials concerned that Beijing is creating new laws which are antagonistic to EU citizens trying to work in its vast market.

They say China is placing new conditions on European firms, requiring their lawyers to be of the same nationality as the company.

The new legislation came into force in December despite angry protests from the Commission and the then Irish presidency of the Union.

“We will continue to pressurise on this,” said a Commission expert who regularly negotiates with Beijing.

He said the Commission was already trying to persuade China to drop other conditions imposed on European law firms: that they may only open one office in the gigantic country of 9.5 million square kilometres; that they may not pursue litigation through the Chinese courts; and that they may no longer hire Chinese nationals.

All three severely limit the amount of business an EU law company may do in China.

“China can set its own rules. The (EU) single market does not reach that far,” said one British lawyer. European law firms have so far not taken Beijing to task for the conditions, but would be pleased if the Commission could negotiate better access for them in the country.

“We think it is a restriction on practice, and not one we would support,” said Patrick Oliver of the English Law Society.