21 ASIAN LEGAL BUSINESS CHINA • 亚洲法律杂志-中国版 WWW.LEGALBUSINESSONLINE.COM/CHINA where the client decided to expand overseas and began operations in the host country within just six months, an unprecedented speed. However, Liu Wen highlights that the situation with TikTok in the United States, where the company has been required to divest, has significantly impacted the strategies of Internet industry clients. These clients are now much more cautious about global expansion, prioritising legal considerations over the previous “business-first” approach. For example, Commerce & Finance’s Shenzhen office has been working with an Internet client for the past ten months to assist in expanding its AI business to Japan. The client insisted on thorough legal research from the start to ensure the feasibility of operating in Japan, illustrating the new trend of aligning business strategies closely with legal frameworks. In addition to being a manufacturing centre and innovation hub, South China is also seeing notable overseas expansion in the electric vehicle (EV) REGIONAL REPORT An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China/Reuters 以AI为代表的中国科技企业也加速了出海步伐 industry. GAC Aion, an EV brand under Guangzhou Automobile Group, has been actively expanding internationally over the past two years, with Thailand as its first overseas market. Media reports indicate that Aion entered Thailand in early 2023 with no office, factory or local employees. By January 2024, construction of its Thai factory had begun, and by mid-July, the factory was fully operational. Wang Jing & GH Law Firm provided legal advice throughout Aion’s investment and factory construction in Thailand. Wang Jing, honorary chairman and senior partner of the firm, reflects on the challenges they faced, including legal compliance, market access, data export and cultural differences. Many issues required continuous communication with the National Development and Reform Commission, as well as active engagement with Thai authorities to secure favourable policies and preferential treatment for the project. One particular challenge in the project was data export. Wang explains that their cross-border legal services team, led by partner Yang Jie, collaborated with the Internet and digital economy team to conduct a due diligence investigation of GAC Motors’ data processing activities. This resulted in a series of compliance review guidelines and data compliance management systems to ensure the secure and compliant export of data. DEEPER TRUST Chinese companies have significantly altered their approach to selecting legal partners for overseas ventures, shifting away from large UK and US firms towards Chinese firms. Liu attributes this change to two primary factors. Firstly, Chinese regulators have imposed stringent requirements on outbound investments, compelling companies to ensure domestic compliance before addressing foreign legal requirements. This includes navigating potential conflicts between local and Chinese laws. Secondly, as China’s role in global trade grows, there’s an
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