Connections to China

James W. Volberding on left, Jon K. Alexander in center, and Mr. Zhao Zhen on right.

The marketplace is global and is getting smaller as days pass.  We are instantly connected with what is happening across the world in a way that was unfathomable a few short years ago.

China holds vast opportunities for the savvy American lawyer.  The country is sitting on 2.5 trillion dollars of cash reserves.  Private business owners possess billions more.  This money must go somewhere.  Much of it is currently flowing into Chinese businesses and real estate creating what everyone realizes is an internal bubble that will pop with vehemence eventually.  Smart Chinese money is looking for locations to place money securely and profitably.  Texas is such a place.

Because business is becoming more and more transnational, it is important for those of us in the law to stay on top of what is happening in other markets. This summer, I met with leading lawyers in Beijing to establish a working relationship for Texas / China business projects.

Mr. Zhao Zhen is the managing partner of the Beijing office of the Far East Law Firm.   A prominent Texas banking attorney and I rmet with Mr. Zhao and the associates and his partners of his law firm to discuss energy and real estate investment opportunities in Texas for Chinese investors seeking to diversify their holdings.

Mr. Zhao graciously arranged for us to speak to the International Section of the Beijing Bar Association, located in the heart of the Chao Yang District, the business and legal district of Beijing.

Chinese culture, because the country has an immature legal system, runs on relationships.  This means that before the deal can be brokered, a relationship must be in place.  One must establish personal trust before contemplating transacting business.  If your organization is considering business in China, you will need introductions, and from there you must work to establish long-term relationships.  Accept that this is expensive and time-consuming, but ultimately very lucrative.  I can help connect you with Beijing executives and lawyers capable of moving you to the right government agency or company.