Global Business Group : China Practice

Case Studies

Chinese Company Successfully Completes Deal to Establish U.S. Operation

At Issue: A well-established Chinese company wanted to expand its operations to the U.S. But while the company had a long track record of success in Asia, it had no experience with or knowledge of U.S. law and business customs. Issues such as site selection, negotiating contracts and buying real estate were major challenges for the company, given its lack of experience in an unfamiliar foreign marketplace. The company needed legal counsel who not only knew the relevant law, but who also could help bridge the cultural gap.

Summary: Several states were vying for the U.S. plant. Womble Carlyle attorney Guanming Fang initially worked on the matter as an informal consultant to Georgia officials, not as an attorney representing the company.

Fang, a native of China, soon realized that the Chinese-language materials provided by the state were poorly translated and were difficult to understand. So she revised the documents to help the Chinese officials better understand the incentives information. She also met with company officials to explain the differences in doing business in the U.S. and China. For example, Fang explained to company officials the role that labor unions in the U.S. workplace, which is substantially different from the role unions play in China.

The company began to consider Fang a trusted adviser and liaison who understands both the American and Chinese approaches to doing business. In 2007, they selected a location in Georgia for their plant and cited Fang's help as one reason for their decision. The company then retained Fang as an attorney to help purchase land and build the new plant.

In her role as counsel, Fang explained numerous U.S. legal concepts to company officials, including the land purchase process, title searches, land surveys and property deeds. To date, she has helped the company with a wide range of topics related to real estate law, regulatory compliance, bond financing and tax issues. Fang helped the company with media relations in the U.S., since the Chinese officials had no experience with the American press. She also helped them adapt to the U.S. business culture.

Implication/Result: The company avoided possible problems related to doing business in an unfamiliar country and successfully worked out a complex deal to build a U.S. plant.

In this case, serving the client involved far more than just providing outstanding legal representation. It also meant creating strong relationships, building trust and finding innovative solutions to the client’s needs.

About the Attorney: Guanming Fang is a Member of Womble Carlyle's Corporate and Securities Practice Group and the team leader of the Firm's China Initiative. She advises mid-market companies in their mergers and acquisitions, strategic alliances, private equity transactions, technology licensings and other transactions.

Download "U.S.-China Differences and Their Impact on Business Behaviors," Guaming Fang, March 2008.