On 26 December 2017, the 2017 Chinese Law and Dispute Resolution Summit on Construction Engineering hosted by CIETAC was successfully held in Beijing. The theme of the Summit was Legal Risks and Enlightenment of Overseas Contracting Projects of Chinese Enterprises. Deputy President of CIETAC Arbitration Court Zhao Jian and Vice-Chairman of National Bar Association Zhang Xuebing attended the Summit and delivered speeches.
Deputy President Zhao Jian pointed out that under the background of the Belt and Road Initiative, Chinese enterprises¡¯ newly signed contracts and turnover of foreign contracting projects had largely grown, foreign contracting business model had constantly been innovative and industry chain had gradually been high-end oriented. In the meanwhile, Chinese enterprises¡¯ foreign contracting projects have been faced with new challenges in the field of politics, economics, law and sociology etc., which also brought about important opportunities for the development of Chinese arbitration industry. Therefore, it was hoped that there would be adequate communication and discussion about these issues on this year¡¯s Summit, and would bringing up more valuable advices and suggestions for Chinese construction enterprises. Vice-Chairman Zhang Xuebing indicated that the influence and radiation effect of the Summit has been enlarging, making important contributions to the development of Chinese construction engineering legislation. This Summit focused on overseas project management and risk prevention, which was very coherent to the Belt and Road initiative. Chinese enterprises¡¯ going-global has been developed to the new stage marked by the output of capital and technology. Pondering on new risk factors and summarizing new development experience were quite necessary in helping Chinese enterprises¡¯ going-global strategy.
After the prize awarding section of the 2017 annual solicit articles for China Construction Law Review, the Summit entered into sections of speeches and discussions. The first round of discussion focused on Risks in Overseas Construction Projects. General Legal Counsel of China State Construction Engineering Mrs. Qin Yuxiu shared with the attendees, at macro level, her views of the project risks and precautionary measures of overseas construction on the basis of her own long years¡¯ working experience, , and from the angles of the feasibility of the projects themselves, risks of prices and exchange rates, liquidated damages and limitation of liability, etc. The President of International Engineering Management School of Tianjin Univerisity Prof. Zhang Shuibo explained the revision history of FIDIC contract text and its influence on overseas contracting projects of Chinese construction enterprises. He also put forward suggestions on risk management of overseas construction from seven aspects such as risks originating benefits, management starting from the contract, project duration being the redline of the management, etc.
The second round of discussion was themed on Project Stakeholders. Deputy General Legal Counsel and Minister of Legal Compliance Department of China Railway Construction Mr. Wang Jiaguo introduced the influence of project stakeholders such as owners, fund raising institutions, sub-contractors and suppliers on overseas investment projects at macro level. He also gave valuable suggestions to Chinese construction enterprises on how to coordinate and manage stakeholders by legal methods. The speech by President of Joint Construction Management Qiu Chuang focused on architects and supervision engineers. Based on the evolution of western countries¡¯ architect responsibility system, he analyzed the roles and responsibilities of architects and supervision engineers in overseas contracting projects. He also brought up his own unique understanding about whether architects and supervision engineers were independent third parties and whether they could work as supervisors, according to FIDIC contract text and relevant regulations of Chinese Architecture Law.
The third round of discussion was themed on Political, Social and Market Environment of Host Country. Vice General Manager of International Business Department of China ENFI Engineering Technology of China Metallurgical Group Zhao Shanshan shared with the attendees the project environmental control issues under the Belt and Road Initiative background. Based on her own long years¡¯ working experience, she introduced the political and policy risks, macroeconomic risks and social environmental risks of countries along the Belt and Road. The chairman of Beijing JUNHE Oversea Engineering Consulting Mr. Cui Jun focused on Government (owners) Defaults and Contractor Claims by analyzing the grey area where the government acts as the owner to default, the law applicable to the contract and the dispute, the problems and suggestions of the Chinese contractors in the overseas investment projects.
The forth round of discussion was themed on Inherent Risk of Contractors. General Counsel of China Power Construction Group Mr. Wang Shubao analyzed problems such as mistakes in decision-making, bidding, contract management and human resources management in the contractor on the basis of the internal risk and control practices of POWERCHINA. He also gave valuable suggestions on feasibility of internal management from the three stages of decision-making, implementation and ending of the project, and pointed out the development trend of integrated risk management. Partner of Zhong Lun Law Firm Ms. Wang Jihong introduced the legal risks of tax and their prevention and control for Chinese enterprises in overseas investment projects. She also shared with the attendees about the overseas investment tax problems encountered in the course of business operation and emphasized the importance of conducting due diligence on tax laws and policies in host countries to avoid unnecessary losses due to tax issues. Partner of Jun He Law Firm Mr. Zhou Xianfeng proposed the suggestions for China construction enterprises from three aspects: country market selection, cross-industry business operation as well as the balance of commercial and political interests.
The last round of speech and discussion of the Summit was themed on The Legal Environment of Host Country, Director of ICC International Chamber Arbitration (North Asia) and ADR Fan Mingchao shared with the participants typical ICC arbitration cases on FIDIC Contracts from the perspective of the Arbitration Institution, and he introduced the advantages of the ICC arbitration mechanism in handling overseas construction disputes. Co-head of Pinsent Masons China Chen Xijia introduced from the aspects of visas, insurance, customs, land ownership, dispute resolution mechanism and other issues that the host country¡¯s legal system may bring to overseas construction projects of Chinese construction enterprises. And she highlighted the host countries' accession to and implementation of the New York Convention and related issues of arbitration system and so on.
Deputy Director of the Domestic Cases Division of CIETAC Li Yun made a final summary of the forum. After reviewing the themes and the important achievements of the previous forums, Li Yun hoped that all legal and non-legal community of Chinese construction industry as a whole, could make unremitted efforts to continue to provide comprehensive high-quality legal guarantees for Chinese construction enterprises, especially in overseas construction projects. At last, Li Yun expressed her sincere gratitude to the guests, forum organizers, co-sponsors and supporters participating in the Summit. More than 200 people including judges, arbitrators, lawyers, corporate lawyers, experts and scholars as well as colleagues from Chinese construction industry attended the Summit.
