Opportunity for law firms in China’s nuclear industry

//Opportunity for law firms in China’s nuclear industry

Since 2014, China’s nuclear industry has accelerated its movement to go out with signing contract to construct nuclear power plants in Pakistan, UK, Argentina, Romania. Now, China is becoming more aggressive in the global nuclear market. The fast expansion of the industry created opportunities not only for itself but also for those companies serving nuclear companies which include law firms.

Legal risk always exist in any industry trading activities, especially for the nuclear industry where the complexity is involved by politics, intellectual property protection, international treaties, and big amount of business transaction. Thus, the legal services can be provided from the following aspects.

China’s PM Li Keqiang and the President of South Africa Jacob Zuma talking the nuclear export

Before going global, a Chinese nuclear company should first understand China’s policies and laws on investment abroad. China exercises controls over foreign exchange, and accordingly the first issue that a Chinese company encounters when venturing overseas is how to remit funds abroad. Aside from foreign exchange, China has now issued support policies that encourage the nuclear industry to go global. Companies should understand and take full advantage of these policies.

Besides, the industrial policy of the host country should be understood. Many countries have regulations attracting or restricting investment in the nuclear industry by foreign investors. Before going global, a Chinese nuclear company should conduct due diligence and gain an understanding of the situation. The standard of construction and radioactive safety of a nuclear reactor is also different in different countries. For example, when China exported Hualong-1 reactor to the United Kingdom, the construction standard had to fit the EU requirements.

Safety of civil utilization of nuclear energy was discussed during the Nuclear Security Summit 2016 where the leaders of most countries in the world were attending

Unlike other industries, nuclear energy need more protection on the intellectual property during the international trading. China now has developed a series of new nuclear technologies such as Hualong-1, CAP1400, HTR etc. It has to be taken care of the technology intellectual property rights.

Legal services in the nuclear industry will be discussed during the 4th edition of Asia Nuclear Business Platform which will take place 18-19 May 2016 in Hong Kong. The senior partner Ms. Wang Jihong of Zhong Lun Law Firm, which provided legal services for China National Nuclear Corporation when it exported Hualong-1 reactor to Argentina, will share her experience in the nuclear industry and her opinion towards China’s nuclear industry going out during the conference.

Additionally international law firms such as Pillsbury, Shearman & Sterling and Luthra & Luthra will be sharing their perspectives during the conference.

For a copy of the agenda, please email [email protected]

By |2019-01-05T13:31:12+08:00April 29th, 2016|industry-insights|0 Comments