2010 – The year ahead
December 08, 2009 | BY
clpstaff &clp articles &As the world meets in Copenhagen, CLP takes its annual look at the issues likely to grab headlines in the year to come, and finds that the future for China is green. In support of a shifting focus to sustainable development, the country's next five-year plan is likely to emphasise cleantech, low-carbon schemes and renewable energy
By Phil Taylor.
| ENVIRONMENT - The east is green CAPITAL MARKETS - Evolution in Shanghai; make or break for ChiNext ANTI-MONOPOLY - Agencies walk a fine line EMPLOYMENT - Unions increase the pressure 2009 - What happened? |
This time in 2008, when CLP canvassed opinions from PRC lawyers and China-focused international lawyers working in Beijing, Shanghai and Hong Kong, the overriding feeling was one of uncertainty, worry and, in many cases, pessimism.
The government was preparing to deploy Rmb4 trillion (then worth US$570 billion, now closer to US$586 billion) in an effort to stimulate the economy and prevent social destabilisation, but implementation rules were still unpublished and recent legislation such as the PRC Anti-monopoly Law (中华人民共和国反垄断法) and PRC Enterprise Bankruptcy Law (中华人民共和国企业破产法) was poorly tested.
As we look back on a tumultuous 12 months, it is clear that China is now in a stronger, more stable position. Much of this stability is doubtless due to the government's swift action as well as the hard work of business people and their professional advisers.
So what will 2010 hold? The Anti-monopoly Law will continue to play a prominent part in regional business dealings and competition specialists should find themselves in demand. But the focus will shift away from merger-control to scrutiny of companies in dominant positions, price control and private actions based on Article 50.
The year ahead will be an exciting one in the PRC capital markets as they wake up from their 10-month long induced coma. This lasted until June 2009, when the listing of Guilin Sanjin Pharmaceutical in Shanghai began a series of significant offerings and helped restore investor confidence. Four months later, Shenzhen launched its long-anticipated junior board (named ChiNext) and debate on allowing foreign listings has intensified. Many say 2010 will be the year of the foreign issuer.
But one of the biggest trends is likely to be a continuing move to the green and clean space. For several years, the government has been gently promoting the development of clean technology and sustainable energy, but there has been an increase in support for environmentally-friendly initiatives recently and it looks as if the country's next five-year development plan could focus squarely on this area. With the right regulations and laws in place, China could easily become the world's green leader.
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