14 ASIAN LEGAL BUSINESS CHINA • 亚洲法律杂志-中国版 SEPTEMBER 2024 COVER STORY “Second, many of the projects GEDI undertakes are large overseas projects which are often governed by foreign laws. The large differences among the legal systems of different countries make it challenging for the in-house team to fully grasp the key points of foreign laws within a short period of time,” says Chen. GEDI’s Legal Department responds to these challenges by closely monitoring updates of the laws and regulations in the new energy field, sharpening the team’s ability to resolve complex legal issues, conducting rigorous risk assessment of key countries and projects, and nurturing risk control talents familiar with the common law system. On the other hand, the Legal Department also sources for foreign legal support and engages external professional legal services providers in countries that GEDI enters for the first time. Fintech company Du Xiaoman more directly feels challenges in the financial industry. The first is tightening regulation and intensifying enforcement in the field of data compliance. Xing Jing, General Manager of the Legal and Compliance Department of Du Xiaoman, tells ALB that the rigor of China’s data compliance-related legislation is worldleading. As the personal financial information handled by Du Xiaoman is highly sensitive, data compliance has become the “sword of Damocles” hanging over the company’s head. “Second, preventing and resolving risks and protecting user rights have become the focuses of regulators. The Internet financial industry faces severe challenges in protecting consumer rights and interests. The rapid development of emerging technologies has also led to the quick evolution of risks such as fraud and money laundering, creating new difficulties to the protection of user rights.” The third challenge comes from intellectual property protection. “The big data processing and smart risk control capabilities of fintech companies have made the industry more prone to IP risks and challenges. With the digital economy and society fast developing, risks such as leakage of trade secrets, core technology patent protection, and brand and trademark protection run through the entire lifecycle from R&D to operation,” says Xing. He adds that through organizational innovation, Du Xiaoman’s Legal and Compliance Department has set up business teams and functional teams to support each other. The business teams provide support across various operational domains, including credit extension, wealth management, payment services, personal financial technology, and supply chain finance. Meanwhile, the functional teams oversee a range of critical areas: labour relations and administration, investment and financing strategies, consumer protection initiatives, management of seals and licences, intellectual property safeguarding, anti-money laundering measures, data compliance protocols, and prevention of criminal activities. ADVANCING WITH TECHNOLOGY The development of AI, particularly the widespread application of large models, has arguably been the buzzword in technology circles over the past year. Many of this year’s winners have made significant contributions to their organisations in developing AI applications. Supporting the compliant development and application of new AIGC (AIGenerated Content) business has been central to the work of Du Xiaoman’s Legal and Compliance Department. According to Xing, his team conducted a comprehensive assessment of compliance risks, data security risks, and network information content compliance risks of open-source software. This ensures that emerging AIGC business can grow in an orderly manner, with compliance achieved at the foundational level. The ethical risks of AI are another key concern for the Legal and Compliance Department. On behalf of Du Xiaoman, the team was successfully selected as a member of the technology ethics working group of the China Artificial Intelligence Industry Development Alliance. This working group, guided by various national commissions and ministries, is jointly established by the China Academy of Information and Communications Technology (CAICT) and relevant AI companies. they can also be used for public transportation such as unmanned cabs and self-driving buses, as well as for logistics transportation.” According to Zhang, the constant emergence of new technologies and scenarios, and the relentless pace of introduction and updating of laws and policies, have also posed challenges to in-house teams. In response, Li Auto Inc.’s team actively participates in industry seminars, legal training and related learning sessions, keeps close track of new technology, and maintains a comprehensive understanding of the latest laws, regulations and technology development trends, so as to support the company to develop AI in compliance with the law. China Energy Engineering Group Guangdong Electric Power Design Institute Co., Ltd. (“GEDI”) is an international engineering and project contracting firm with national comprehensive class A engineering qualifications and has won many national awards and accolades. Chen Yao, legal specialist of GEDI’s Legal Department, says that with accelerating transition to green and low-carbon development, China’s new energy industry has ushered in the era of rapid development. “In the field of photovoltaics and wind power, the energy engineering industry is booming thanks to constant innovation and iteration of technology. At the same time, government policy incentives and the continuous optimization of market mechanisms have provided solid support for the growth of the new energy industry. At present, China is already leading the global competition of clean energy technology.” Nevertheless, Chen admits that exponential industry growth has brought about many challenges to the in-house teams of energy engineering companies, requiring them to constantly adapt to the new legal environment and market demands. “First, the energy industry is seeing more diversified business offerings. For example, despite the rapid rise of the offshore wind power industry, relevant laws often lag behind industry development, as a result of which we tend to encounter many complex legal issues during project acceptance and execution for which no clear legal basis is available.”
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