CHINA: An Introduction to Corporate/Commercial: Hebei (PRC Firms)

Overview and Analysis of Hebei's Legal Market in 2023

Following the end of the pandemic, China has experienced significant revitalisation across various industries in 2023, and the economy has shown signs of recovery. Notably, the city of Shijiazhuang, which is the capital of Hebei Province, stands out with pride as having been the first city in China to lift the lockdown during the COVID-19 pandemic. The legal market of Hebei Province in 2023 has undergone notable developments, reflecting broader trends in China's legal industry, marked by increased digitisation, regulatory changes and internationalisation. This overview provides a snapshot of the current landscape, key trends and forecasts for the future.

Digital transformation 

More and more Chinese law firms are looking at the impact of artificial intelligence and hi-tech developments on legal work. The legal sector in Hebei, akin to the whole national trend, has seen significant strides in digitisation. Some law firms have adopted new technologies like the OA system for case registration, document automation, transaction recording and evidence storage. The digital platforms for legal services have attracted a wider client base, and the adoption of cutting-edge technology for case management, legal research, document automation and even artificial intelligence for routine tasks has allowed progressive law firms to deliver services more effectively and efficiently.

This transformation is not just about enhancing productivity; it is also about staying relevant and responsive to client expectations in the provision of a digital legal service. While some Chinese nationwide law firms have made progress in embracing legal technology, there is still a significant gap in the adoption of these technologies among smaller law firms and traditional practices.

Regulatory and law changes 

1 September 2023 was an important day in the legal profession, with several new laws coming into force, including:

- the Law of the People's Republic of China on the Construction of a Barrier-Free Environment, restricting excessive packaging of food and cosmetics; - the national “Building Mobile Communication Infrastructure Engineering Technical Standard”;

- the Regulations of the People's Republic of China on Consular Protection and Assistance;

- the Provisions on Procedures for Handling Legal Aid Cases, as amended by Decree No 148 of the Ministry of Justice on 11 July 2023;

- the Regulations on the Supervision and Administration of Private Investment Funds, as promulgated by Decree No 762 of the State Council;

- the Measures for the Administration of Independent Directors of Listed Companies, issued by the China Securities Regulatory Commission;

- the provisions on Administrative Punishment Procedures of Industry and Information Technology, Order No 63 of the Ministry of Industry and Information Technology of the People's Republic of China; and

- the Supreme People's Court's Notice of the Provisions of the Supreme People's Court on requesting Instructions and Reply to the Application of Law No 88-2023.

According to national directives, these adjustments include strengthening the alignment of intellectual property laws with international standards and providing better protection for inventions, designs and trade marks. This change may increase the confidence of domestic and foreign entities in innovation in Hebei; by tightening anti-monopoly regulation, Hebei aims to promote fair competition, prevent monopolistic practices and create a level playing field for enterprises of all sizes.

These changes are designed to stimulate economic growth, attract investment and protect both public and private interests, subsequently generating a need for legal expertise in these areas to guide compliance and address new legal expectations and challenges to assist companies in complying with and navigating the complexities of these laws. These changes are intended to spur economic growth, attract investment and protect public and private interests, subsequently generating a demand for legal expertise in these areas to guide compliance and address new legal expectations and challenges.

Specialisation and diversification 

Law firms in Hebei have moved towards specialisation, featuring practices like company law, criminal law, intellectual property law, environmental law and international trade law. All influential law firms in the country have opened branches in Hebei. As the businesses in Hebei diversify, there is an increasing need for specialised legal services catering to sectors such as manufacturing, green energy and e-commerce.

Cross-border legal services 

Hebei's strategic location, being in close proximity to China's capital, Beijing, provides an added advantage for law firms situated within the region. This geographic advantage makes it easier for Hebei-based law firms to engage in international collaborations, leverage resources and attract talent with global perspectives. Hebei law firms have seen an increase in demand for cross-border legal expertise. The proximity to Beijing also facilitates international collaborations and an increase in inbound and outbound legal work. The Belt and Road Initiative, China's ambitious infrastructure and economic development project spanning Asia, Europe, Africa and beyond, has placed a spotlight on international trade and cross-border co-operative ventures.

As such, law firms in Hebei have been motivated to expand their international law departments, forge partnerships with overseas firms and provide dynamic legal solutions that cater to the evolving demands of cross-border commerce and development projects. These circumstances require lawyers to improve essential services such as language skills, cultural competencies and a deep understanding of different legal systems. Frequent changes in regulations can pose challenges for businesses and law firms, requiring them to adapt swiftly to legal changes. Increased competition has raised the bar for local legal service providers, compelling them to invest in quality, talent and international partnerships.

Finally, this reflection on the landscape of the legal market in Hebei shows that 2023 was marked by a significant transformation after the COVID-19 pandemic and changes in the international political and economic environment. The legal industry of Hebei is navigating the convergence of several powerful forces: technological innovation, sweeping regulatory changes and the continuous march of globalisation. Law firms that prioritise agility, professional services and digital transformation are able to leverage emerging opportunities to lead the legal industry in China's “Beijing-Tianjin-Hebei integration”.