In the news: Law firm tenders, Defamation Interpretation and visa waiting times
September 18, 2013 | BY
clpstaff &clp articlesLaw firms are forced to use agencies to apply for tenders with SOEs as the government cracks down on corruption. An Interpretation on defamation could better protect foreign companies and executives are unhappy over new visa waiting times
SOEs outsource law firm tenders
Legal Week reported that law firms are paying agencies like CITIC International Tendering and China CNTC International Tendering Corporation to submit panel applications for state-owned enterprises (SOEs). A Beijing partner at an international law firm said he paid Rmb1000-2000 ($150-300) for proposal documents and a further Rmb7000 after being selected. The main driver for using such agencies is so SOEs can show that there was no bribery or corruption associated with the bids.
Partners have said they find the process unnecessary and burdensome. What the practice shows is that SOEs are obviously feeling the need to guard themselves from potential bribery and corruption probes. There are also complaints that the agencies are ill-equipped to deal with the applications as they have little or no knowledge of the legal sector. It is unfortunate that SOEs have to go to such lengths and law firms are also taking a beating for it. This seems to be just another cost of doing business in China.
More from CLP:
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now