EARTHQUAKE'S IMPACT ON LOCAL LAW FIRMS

July 09, 2008 | BY

clpstaff &clp articles

The Sichuan tragedy has had a significant impact on the real estate sector in Chengdu but has less effect on the economy in Chongqing, said Tan Qiang,…

The Sichuan tragedy has had a significant impact on the real estate sector in Chengdu but has less effect on the economy in Chongqing, said Tan Qiang, lawyer at Exceedon & Partners Law Firm in Chongqing. Compared with Chengdu, Chongqing's location is more favorable to investors who are interested in the western cities of China, he said.

Qiang said that this disaster will definitely affect investors' decisions, shifting their focuses from Chengdu to Chongqing, as Chongqing is further away from the earthquake zone.

Qiang added that some companies with land in Chengdu are already looking to sell it after the earthquake. “More and more enterprises want to get rid of their land in Chengdu, so the land price has dropped quite a bit in a month.”

The infrastructure and real estate sectors of Chengdu's law firms will be directly impacted in the short term. But in the long term, law firms will see growth in these two practice areas as the government has committed to rebuilding the cities.

Issues of property rights have already been raised, as refugees are uncertain whether their property rights still exist after the earthquake damaged all their possessions.

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