Li Ming: Implementing a service culture

Comprising more than 40 legal professionals, Haier's legal division was among the first of its kind in China to be approved by the Ministry of Justice. The division continues to attract experienced legal professionals and maintain good relationships with renowned lawyers, both domestic and international.

Haier employs 60,000 people, including 10,000 outside China. How is this distribution of employees reflected in the legal function at Haier?

Haier has an extensive global presence, so to provide professional legal services in line with businesses from all over the world it established a designated overseas legal affairs department in China.

What are the main areas of focus for Haier's in-house team in China?

Major areas of concern for the team at Haier are IPRs, investment management, contract management, labour law and internal audit.

With regards to IPRs, innovation is at the core of Haier's competitiveness and the Group has established a comprehensive development and protection mechanism. In 2008, the brand value of Haier was as much as Rmb80.3 billion (US$11.75 billion) making it the most valuable brand in China for the seventh consecutive year.

With regards to labour law, the key to Haier's development is its people. The legal affairs and human resource departments have established a complete set of rules and systems to ensure the compliance of labour use and to build up a harmonious working relationship with staff.

To what extent do you outsource work and to which law firms?

To sustain operation of the Group's global business, we must have an open mind and consolidate the most refined lawyer resources from around the world. We have therefore built up a global lawyer network platform, and fostered amicable and successful relationships with external lawyers in China, US and Europe. External lawyers have given us enormous support international trade contracts, investment affairs and legal affairs relating to IPRs.

What was your involvement in FPA's recapitalisation plan and Haier's stake acquisition?

In the decision-making process, the legal affairs department and other business departments jointly formulate strategic objectives as well as plan investment structures and mode of transactions.

To complete the acquisition, we instructed renowned law firms from China, Australia and New Zealand. Analysis of local law was made to evaluate various risks associated with the realisation of the strategic objective, and we put forward contingency plans and participated in the negotiation of contracts.

How significant do you think Mofcom's recent measures to lower regulatory hurdles for outbound investment will be on investments abroad?

The Measures for the Administration of Outbound Investment (境外投资管理办法), recently promulgated by Mofcom, is a measure to encourage Chinese enterprises to forge business ties with the external world. Indeed, this is a successful attempt by the government to encourage enterprises to add impetus to external investment activities.

External investment and cooperation can boost the export of domestic facilities, raw materials and technology, and in turn give rise to more employment opportunities. Previously, only products were exported but now funds, technologies, commodities and management skills can be exported.

To what extent do you think the extension of online procedures (i.e. three-day turnaround for approval) might have the largest impact on smaller, more routine investments?

The core of the Procedures is to support Chinese enterprises forging external ties in two main respects:

1) enhance convenience and implement decision-making of enterprises;

2) strengthen guidance and specify the content of services provided by Mofcom

Such measures simplify verification procedures for external investment, especially for the small, regular investment more favourable to enterprises.