Chinese firms face EU compliance hurdles due to legal service reluctance
Chinese companies expanding into the European Union are encountering significant compliance issues because they often avoid paying for professional legal services. A planned battery factory in Belgium, which would have created 2,000 jobs, failed partly because the unnamed Chinese company did not hire a law firm for a proper feasibility report, according to Xiufang Tu, a partner at Daldewolf law firm in Brussels. Instead, many Chinese firms gather superficial information by meeting with multiple European legal firms without commissioning full studies, leading to basic and inadequate reports. This weakness is becoming more pronounced as the EU intensifies probes into Chinese businesses.
Key facts
- Chinese companies often avoid paying for legal services when expanding into the EU.
- A planned battery factory in Belgium would have created 2,000 jobs.
- The unnamed Chinese company did not hire a law firm for a proper report.
- Xiufang Tu is a partner and head of the China desk at Daldewolf law firm in Brussels.
- Many Chinese firms gather information by meeting with multiple European legal firms without paying.
- The EU is conducting a barrage of probes into Chinese companies.
Entities
Institutions
- Daldewolf law firm
Locations
- Belgium
- Brussels