ALB OCTOBER 2024 (ASIA EDITION)

34 Asian Legal Business | October 2024 Beyond South China, particularly the Guangdong-Hong Kong-Macao Greater Bay Area, is leading China’s global expansion in manufacturing, technology, and new energy sectors. As companies localise overseas operations, South China law firms are innovating legal services and training cross-border talent to meet growing compliance demands. By Hu Yangxiaoxiao factors, some South China companies are relocating their factories overseas, particularly those whose products are exported to sensitive regions like Europe, the United States and Russia. These companies are increasingly setting up operations in locations such as Southeast Asia and Mexico. Lin Zejun, director of the Greater Bay Area office at East & Concord Partners, points out that South China is experiencing an unprecedented wave of overseas expansion in terms of depth, breadth and scope. He observes that manufacturing companies are not only moving their factories abroad but also establishing parts of their R&D centres overseas. Large companies are no longer limiting their outbound investments to a single host country; instead, they are targeting multiple countries, building comprehensive supply chains that integrate production resources and technologies from various regions. Greater Bay Area geopolitical environment and the slowdown in major global economies. The report highlights that, driven by the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) initiative, now in its fifth year, South China is poised to become a new hub for technological innovation in the coming years. This development is expected to create novel business models and opportunities, positioning the region as a key driver of China’s trade and economic growth. One of the main sources of economic vitality in South China is its deep connection with the global market. However, the modes of interaction between South China and the rest of the world have shifted in recent years. Liu Wen, partner at Commerce & Finance Law Offices, notes that whilst South China’s economy has always been strongly connected externally, this connection was previously dominated by trade in goods. Now, due to sanctions and other At the start of 2024, the American Chamber of Commerce in South China released its Special Report on the State of Business in South China, which continues to express optimism about the region’s development despite the complex • Chinese firms now preferred over UK/US firms for overseas legal services • Hong Kong remains crucial gateway for Chinese overseas expansion • South China law firms adapting with integrated services and global networks

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