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The Metropolitan

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PECIAL SECTIO
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Chinese Ambassador Speaks Of Globalization’s Promise
China N
Providing broad perspective to our cov- The Globalization Process gan Stanley concluded that four to eight
erage of China, the Editor offers recent In spite of the heavy blow to the million U.S. jobs are closely associated
comments from the Hon. Zhang Yesui, world economy by the international with China-U.S. trade.
Ambassador of the People’s Republic of financial crisis, the main trend of eco- Second, China's export of quality
China to the United States. nomic globalization is unchanged due and affordable commodities to the U.S.
to the persistence of three major dri- not only promotes China's economic
History Of The People’s Republic of vers: scientific and technological growth, but also meets the needs of
China advances, cross-border trade and American consumers. A total of over
China has gone through an extraordi- investment, and international industrial 600 billion dollars have been saved in
nary journey since it was founded, par- restructuring. Technological advances the past 10 years, according to one esti-
ticularly during the past 32 years of with environmental protection, new mate. One study by the U.S.-China
reform and opening-up. Overall, the energy and low-carbon economy, as Business Council shows that trade with
economy has grown significantly, result- well as technology at its core, will con- China has boosted economic growth
ing in greatly improved living standards, tinue to drive the new round of global- and lowered the inflation rate for the
better educational levels and enhanced ization. Response to the international U.S., resulting in an increase of approx-
cultural sophistication for the Chinese financial crisis has given rise to a pro- imately 1,000 dollars in real disposable
people. found industrial restructuring and annual income per U.S. household.
The average life expectancy is up global reallocation of resources. Third, investment by Chinese com-
from 35 to 73 years. Illiteracy is down The effects of economic globaliza- panies in the U.S. has helped to create
from 80 percent to below 3.5 percent. Hon. Zhang Yesui many local jobs. For example, China
tion as a double-edged sword have
Between 1978 and 2009, China's per become more obvious. On the one Ocean Shipping Company (COSCO)
capita GDP has grown by over 12 times, The rise and fall of international energy
hand, the worldwide flow and distribu- started direct service to Boston in 2002,
with more than 200 million people in and food prices also directly affect the
tion of elements of production has which saved Boston’s port from being
rural areas being lifted out of poverty. life of the Chinese people. Although
undoubtedly lowered costs, increased closed down and preserved 9,000 jobs.
Globally, China is playing an active China's GDP is one of the biggest in the
efficiency and further improved overall Fourth, for many American compa-
international role as never seen before. world, its per capita GDP is only 3,700
productivity. On the other hand, global- nies, China operations are the highlight
dollars, less than 10 percent of the per
ization has aggravated world economic of growth and, for some, the only busi-
capital GDP in the U.S. and ranking ness generating profits. According to
imbalance. There is growing public dis- behind 100 other countries. Every year,
HIGHLIGHTS content and suspicion in many coun-
tries, and the mood for trade and invest-
24 million people need jobs in Chinese
cities. China faces challenges from an
AmCham-China's 2010 White Paper on
the State of American Business in
ment protection is on the rise. Thus, we China, 71 percent of U.S. companies
irrational economic structure, weak sci- operating in China made profits in 2009
recognize the risks of excessive finan-
Law Firms entific innovation as well as environ- and 91 percent are optimistic about the
cial globalization.
Helping Chinese Companies mental concerns and resource con- five-year prospects. In 2009, General
While pursuing positive develop-
Access U.S. Capital Markets straints. The uneven development Motors filed for bankruptcy in the U.S.,
ment within China, we also are making
Interview: Christopher Auguste between urban and rural areas and but its sales in China went up by 67 per-
contributions to the global economy.
and Eric Lerner KRAMER LEVIN among different regions creates an cent, making China its second biggest
The Chinese economy has become an
NAFTALIS & FRANKEL LLP* imbalanced economic and social devel- overseas market.
increasingly important engine for world
Page 37 economic growth. It is estimated that opment. These challenges are becoming
more acute in the context of globaliza- Trade Relations
Doing Deals In China: A Legal China will account for more than 30
tion. Given the fact that China-U.S. busi-
Perspective Interview: Anthony percent of world economic growth in ness ties are growing so fast in so many
Wang WEIL, GOTSHAL & 2010. In the wake of the international China And U.S. Alignment Of areas on such a large scale, problems
MANGES LLP* Page 38 financial crisis, China was one of the Interests and frictions are hardly avoidable. The
Chinese Counsel Crucial To first to recover and has played an In this age of globalization, the inter- key is to address them properly through
Cross-Border M&A Interview: important role in promoting an early ests of China and the U.S. have never dialogue and consultation. There are
Lan Lan JINCHENG TONGDA & recovery worldwide. been more aligned. We are one some in the U.S. who believe that the
NEAL Page 39 Integration Into The Global another's second largest trading partner. trade imbalance is caused by the under-
The Pacific Northwest: And A Economy China has been the fastest growing mar- valued exchange rate of the Renminbi
Law Firm Close To China Since the policy of reform and open- ket for U.S. export, and U.S. export to (RMB). In fact, the root cause of the
Interview: Randy J. Aliment ing up was adopted in 1978, China has China has grown by 330 percent over trade imbalance is structural differences
WILLIAMS KASTNER Page 40 actively participated in international the past decade. It grew by 33.8 percent in trade and investment, not the RMB
Navigating The Pitfalls Of division of labor and cooperation, in the first three quarters of this year. exchange rate. It is precisely the result
Arbitration With Chinese Par- attracted foreign capital, advanced The U.S. is the number one source of of international division of labor and
ties John Savage KING & technology and management expertise, foreign investment in China, and industrial transfer in the era of global-
SPALDING LLP* Page 41 upgraded industrial structure and investment from Chinese businesses in ization.
improved economic patterns. China's the U.S. also has increased. China does not seek trade surplus.
Organizations Economic and trade ties between China has a surplus in trade of goods,
economic development over the past 30
Microfinance: New Frontiers years essentially is attributable to China and the U.S. are mutually benefi- but runs a deficit in trade of services.
In India and China Interview: reform and opening up, but at the same cial and include the following tangible China has a surplus in trade with the
Monica Brand ACCION INTER- time, it has also benefited from oppor- benefits to the U.S. First, the rapid U.S. and Europe, but runs a deficit in
NATIONAL Page 34 tunities presented by economic global- expansion of U.S. export to China has trade with Japan, Republic of Korea and
ization. created many job opportunities in the ASEAN countries. The majority of
Some Of The Above Partner As China's economy integrates with U.S. According to U.S. Commerce Sec- China's exports to the U.S. are labor-
With Corporate Counsel By the world economy, it is exposed to the retary Gary Locke, for every one per- intensive, low value-added consumer
Providing Us With Financial And risks and challenges associated with cent increase in U.S. export to Asia, goods. Many of them are no longer pro-
Editorial Support. globalization. Fluctuations in the inter- 100,000 new jobs are created. It is esti- duced in the U.S. and would have to be
national financial market have signifi- mated that between 2001 and 2007,
* Supporting Law Firms cantly decreased the assets of many U.S. export to China created 2.57 mil-
Chinese companies and individuals. lion new U.S. jobs. Research by Mor- Please turn to page 36
Page 36 The Metropolitan Corporate Counsel December 2010

GW Law School examines a wide range of legal issues Chinese Ambassador export of hi-tech products to China.
relating to India. A few years ago we China is prepared to further increase its
Continued from page 31 hosted in Washington, DC a major con- Continued from page 35 import from the U.S.; however, among
stitutional law conference involving our 2008 hi-tech product imports, only
businessman Vinod Gupta, was instru- India that featured leading lawyers from purchased from other countries. Appre- 6.9 percent were from the U.S. This is
mental in establishing the IIT Kharag- India, including Fali Nariman, Abishek ciation of the RMB will not solve the out of proportion, considering the U.S.
pur business school, which is named Singhvi, and Prashant Bhushan, as well issue of trade imbalance for the U.S., is the leading nation in science and
after him. Vin shared in the vision of as lawyers and academics from the nor will it noticeably reduce the U.S. technology. U.S. export to China will be
educating the brilliant graduates from United States. The center will pull unemployment rate. From 2005 to greatly enhanced if restriction on high-
the IIT and other scientists and engi- together and manage the many different 2008, the RMB has appreciated by 21.1 tech export to China is eased and real
neers from around India in the field of aspects of our Indian activities, such as percent against U.S. dollar, but the U.S. efforts are made to promote free trade.
law, with an emphasis in IP law, so that student moot court competitions, stu- trade deficit continued to grow during Third, we should encourage Chinese
they could be equipped to work as dent exchanges, conferences and other this period. This proves that the RMB businesses to invest in the U.S. Many
lawyers on IP matters. Once the idea collaborative activities with our Indian exchange rate is not the cause of trade Chinese companies face obstacles and
was defined, we were asked to help counterparts. Gauri Rasgotra, a lawyer imbalance. China will further advance uncertainties when making investment
identify topics for the curriculum at the from India, served as the first head of the reform of its exchange rate regime, in the U.S. We must create a level play-
new law school and also to help in other our India Project, and we are delighted but external pressure can only be coun- ing field and encourage more Chinese
respects, such as identifying course that Rina Pal has now taken over. The terproductive. companies to invest in the U.S., which
materials and aiding in the establish- center will also look for more opportu- The Importance Of Robust China- will be conducive to job creation and
ment of the library. nities for our students in India. For U.S. Relations economic growth.
example, last academic year, we sent China-U.S. cooperation has assumed Broader Opportunities For
Editor: How has India’s legal profes- two of our students to Gujarat National greater international significance. In Cooperation
sion changed owing to the influx of Law University to compete in its moot
foreign investment? response to the international financial Educational and cultural exchanges
court competition – and the team won. crisis, China and the U.S. have stepped can serve as an important bridge
Members of the winning team were up macro economic coordination,
Karamanian: This is a very interesting between China and the U.S. At present,
given the opportunity to intern at the worked together within the G20 frame-
and timely issue due to a recent legal 120,000 Chinese students are studying
law firm of Lakshmikumaran & Sridha- work, and made important contribution
challenge to the role of foreign attor- in the U.S. Currently, there are about
ran in New Delhi and Jocelyn Bond of to economic recovery in both countries
neys in India. We are watching with 20,000 American students studying in
the team is at the firm now. We are send- and in the world. We have also had pro-
interest the developments concerning China. The U.S. government has
ing another team this coming year to the ductive consultation and cooperation on
liberalization of the legal market in launched a 100,000 Strong Initiative by
Gujarat National Law University as a series of regional and global issues
India for U.S. lawyers. India has a very which it will send 100,000 American
well as a team to the K.K. Luthra such as counter-terrorism, non-prolifer-
established, sophisticated and large bar. students to China in four years. We wel-
Memorial Moot Competition at the Uni- ation, climate change, the Korean and come more American students to study
Lawyers in India, like lawyers in the versity of Delhi, Faculty of Law. Iranian nuclear issues. and conduct research in China. I was
United States, are well-versed in many
President Hu Jintao and President pleased to learn that University of
aspects of business law. A recent article Editor: What was the effect of Presi- Obama have agreed to work together to Nebraska (UNL) president, James Mil-
noted that the focus on IP law in India dent Obama’s trip to India? build a positive, cooperative and com- liken, is visiting China. His first trip to
has led to the rise of Indian law firms
prehensive China-U.S. relationship for China represents a major step to
and lawyers specializing in IP law, and Karamanian: President Obama’s the 21st century. This has set the direc-
it seems some of them are doing very enhance exchanges and cooperation
recent visit heightened the focus on tion for our bilateral relations. The with Chinese universities. I hope that
well financially. Also, the increased India. Mind you, President William China-U.S. relationship will grow more the Joint PhD programs, the Joint R&D
flow of trans-border transactions has led Clinton and President George W. Bush solid and stronger as our two countries projects and the Confucius Institute that
to a greater interest in arbitration and were also both highly engaged with share more common strategic interests the UNL has in partnership with Chi-
other forms of alternative dispute reso- India, so it is nice to see that President and cooperate with each other in more nese universities will be more and more
lution. We are seeing more of our LLM Obama is building on the previously areas. successful, thus making fresh contribu-
graduates from India gravitating established momentum. An important
Core Strategies For China-U.S. tion to the growth of our educational
towards the major law firms in India and aspect of the U.S.-India relationship is
Relations and cultural exchanges and friendship
working on matters relating to foreign education. Both the United States and between our two countries.
investment. It remains to be seen how India, the world’s two largest democra- We stand for a comprehensive
these developments will affect foreign cies, have very strong institutions in approach to ease the trade imbalance Globalization’s Promise
lawyers. higher education. Over the past year, between China and the U.S. Both sides Global efforts are needed to address
India’s Minister of Human Resources will be losers in a trade currency war. In the challenges of globalization. It is
Editor: Based on Raj Davé’s recom- Development, Kapil Sibal, has visited my view, it is of vital importance for us necessary to make globalization more
mendations, a mock trial was the United States to discuss collabora- to cooperate in three areas. universally beneficial, coordinated and
arranged in India with presentations tive educational opportunities. GW Law First, we must continue to support balanced. Global governance – with
by U.S. lawyers presenting a patent has built meaningful relations with each other's economic restructuring. corresponding rules, regulations and
law case before a U.S. judge and jury leading Indian law faculties over the last China seeks to achieve economic mechanisms that can rise to global chal-
under U.S. law and another trial by seven years. We measure our progress growth through boosting domestic lenges – needs to be improved. The
Indian lawyers before an Indian by the outstanding Indian students we demand. The 12th Five-Year Plan, establishment of the G20 provided a
judge under Indian law. have enrolled at GW Law and the qual- which is being drafted, lays emphasis unique platform for enhanced global
ity of the programming and other col- on continued effort to expand domestic governance. The reforms of the IMF
Karamanian: Nearly every year we laborative activities we have held with demand, transform the mode of eco- and World Bank are also necessary
have held a mock trial the day before Indian law faculties and lawyers. nomic development and embark on the steps to improve international coopera-
the IP summit. The audience consists path of balanced development. The size tion.
largely of students from Indian law Editor: What are your plans for the of China's domestic market is expected The Chinese Embassy embraces the
schools. The trial is a useful educational future? to surpass two trillion U.S. dollars this commitment to fostering expansive and
tool as it allows for the comparison of year, far more than China's total export. productive China-U.S. relations. We
the presentation of a case under U.S. Karamanian: On the IP front, we are At the same time, the U.S. is changing encourage exchange and dialogue at all
law by U.S. lawyers and then under looking in 2011 to host a roundtable that its high spending, low saving mode of levels, and it is our sincere hope to serve
Indian law by Indian lawyers. It has would allow for a wider range of partic- growth. We should support one as a bridge for friendship and deeper
been interesting to see the similarity ipants with the expectation of a more another’s restructuring efforts and mutual understanding between the Chi-
between the two systems, particularly as academic treatment of some of the explore cooperation in such areas as nese and American people. I welcome
to the cross-examination of witnesses. issues. Our hope is that the roundtable clean energy, energy conservation and all to visit the official website of the
The U.S. delegates have also enjoyed will lead to published papers. We will emission reduction, environmental pro- Chinese Embassy in the United States:
watching the outstanding arguments by continue with our outreach to the busi- tection, infrastructure and modern ser- http://www.china-embassy.org/eng/,
some of India’s leading advocates. ness community, legal professionals, vices industry. and I encourage all interest in China and
the universities and other constituen- Second, we need to increase U.S. China-U.S. relations.
Editor: Please describe the Indian cies, including members of the NGO
Studies Center at GW Law and how community. Also, we are organizing
it interrelates with the India Project. more activities with our counterparts at
Indian law schools, such as exchanges, COMING IN J A N U A R Y : Focus on the UK
Karamanian: It’s important to have a moot court competitions, and joint pub-
full-fledged center at GW Law that lications.