DuPont China interview: Adding value to the business

Compared with other in-house teams that I've been part of, the role here is much more integrated, and I work closely with, and have a sound knowledge of, the finance and HR functions as well.

Our greater China legal team has 15 lawyers and other professionals located in various cities in China.

We have more than 30 entities in China including joint ventures (JVs), general companies, R&D centers and manufacturing plants.

There are regulatory foreign ownership restrictions in quite a number of industries DuPont operates in. What are your thoughts and experiences with Sino-foreign JVs?

Interestingly, DuPont's very first China entity, besides its China holding company, was a JV in the crop business. The JV has more than 20 years of experience in the field and has been working extremely well. Much of what we learned from it has been applied in our other JVs, such as communication processes and various protocols.

Of course there are challenges—differences in culture and business practices aren't always easy to overcome, and the equipment and execution may not work out as exactly stated in the agreement for instance—but it's vital for the foreign investor going in to know the type of local partner it wants to work with and how the philosophy, potential and vision complement its own.

Due diligence is extremely important. It's not just routine work. All lawyers have a bible for doing M&A; we all have our standard set of documents. But the diligencing process must be tailored to specific transactions and the legal team has to accurately present the data and carefully explain the co-value of the investment so that the shareholders can make the right decision.

Once the JV is set up, the foreign shareholder should avoid pointing out every little detail on how the JV should be run as this makes it more difficult for the Chinese partner to understand. Communication and trust are extremely important during the integration period, and this is when the legal function must step up to the plate. For example, even in preparation for meetings, the agenda needs to be clear and effective.

And equally important is to understand and cater to the different customers. Some disagree, but I'm of the opinion that understanding clients' differences is part of the legal role. The legal team should have the skills to communicate with the JV's customers in the way they feel comfortable, and translate and relay the feedback accurately to the JV.

Chinese regulators pay a lot of attention to the chemical industry. What's DuPont's number one priority in terms of compliance?

When I first joined DuPont and went through orientation training, the emphasis from day one was safety. Nearly every meeting I attend raises the issue of people's safety. Compliance and respect for people in general are in every one of our employee's DNA. The company also has a business called DSS [DuPont Sustainable Solutions], a consulting division that provides workplace safety training to companies. Manufacturing companies worldwide are familiar with the DuPont safety standard and even refer to it as the benchmark.

China, in particular, has substantially tightened work safety regulations and requirements in recent years and we do our best to stay ahead of them. We implement our world-class safety standard in China to minimize risks for all our employees, business partners and contractors.

How involved is the legal team with the R&D center in Shanghai?

DuPont is driven by innovation and R&D lies at the core of that value. In addition to the traditional research activities, our R&D center in China focuses on application, efficiency, integration of sales and marketing with product development, and coming back with solutions to specific client needs.

I'm always excited to visit the R&D function. There are so many talented engineers and scientists working together and coming up with all sorts of new ideas in a vibrant atmosphere. But the funny thing is, as a lawyer, all I'm thinking about when I walk around are patents, trade secrets and customer NDAs. So our R&D colleagues sometimes get a bit cautious when legal shows up.

All jokes aside, the R&D, commercial legal and IP legal teams work extremely closely together. We all cooperate and think carefully about building our IP portfolio, protecting our knowhow and signing non-competes with our technical staff. It's very rewarding work and it's good to see that the legal function adds value to protecting the scientists' projects and inventions.

Is the merger with Dow Chemical complete in China?

Merger approval has not yet been granted by the Ministry of Commerce (MOFCOM) in China.

I saw that DuPont launched a new plant in Shenzhen in June. It must have been quite an investment—news reports said it will be the company's largest compounding plant in the world. Can you tell me more about it?

Sure. It was a really solid business decision and a huge experience for us. The legal team tackled a number of issues involving import/export, material transformation, supply chain, existing contracts with business partners and consent from suppliers and clients.

But the legal function's contribution was only a part of a large and sustained effort put in by so many employees from different divisions and groups working as a team. There were a number of regulatory, contractual and HR considerations and in this respect, the legal team gave insight into laws, policies and prudent risk mitigation.

In the end, the project paid off and everyone was happy with the launch. It was truly a great achievement for all the employees here, particularly those that invested so much into it.

By Katherine Jo

您在杜邦担任什么工作？在这样大规模的企业中，公司法务面临着什么挑战？

我是杜邦中国的高级法律顾问。我父亲终身从事化工行业工作，所以我从小就知道杜邦，也了解这是一家很大的企业。很高兴有机会在这里工作。

杜邦在历史上一直被称为化工企业，但过去几年来我们的重点已有所转移。新的重点是成为一家市场驱动的高科技企业，表示我们将应用化学知识来改进应用和服务，从而造福于我们的客户。

杜邦要求每名法律顾问具备出色的商业智慧和洞察力。总法律顾问也是公司的商业合作伙伴，必须与各业务部门合作来建立新模式，满足市场和客户的需求。杜邦业务的日趋多元化对公司本身也是越来越大的挑战；如今，我们的业务涵盖工业和农业、营养健康、技术和电子、化学品和材料及建筑等。

相比其他我曾任职的公司内部法律团队，这里的工作更具有综合性，我与财务和人力资源部门合作密切，本身也对财务和人力资源有丰富知识。

我们大中华区法律团队有15 名律师和其他专业人员，位于中国的不同城市。

我们在中国有30多家实体，包括合资企业、一般公司、研发中心和制造厂。

杜邦经营的不少行业中存在外资持股的监管限制。对中外合资企业，您有哪些见解和经验?

有趣的是，除中国控股公司外，杜邦在中国的第一家实体就是农作物业务的合资企业。这家合资企业在该领域有20多年经验，经营得非常出色。我们从中获取的不少经验也应用到了其他合资企业，例如沟通程序和各类议定书。

这其中当然会有挑战，要克服文化和商业运作的差异并非易事。比如说，设备和执行可能不会完全按照协议的规定来办。外国投资者有必要了解本地合作伙伴的类型，以及两者的理念、潜力和愿景如何互补。

尽职调查极为重要，它不仅仅是一项常规工作。所有律师都有一套并购交易的准则，我们也有自己的标准文件，但尽职调查过程必须适切特定的交易，法律团队必须准确陈述数据，谨慎说明投资的共同价值，使股东能够作出正确的决策。

合资企业设立之后，外国股东应避免指出合资企业经营应如何运作的各个微小细节，因为这样会使中国合作方更加难以明了。在整合阶段，沟通和信赖非常重要，这时法务部必须介入并发挥作用。例如在准备会议的时候，会议议程必须明确有效。

同样重要的是要了解和满足不同的客户。有些人可能对此有不同观点，但我认为了解客户差异性也是法律工作的一部分。法律团队应能技巧地以合资企业客户感到舒服的方式与他们沟通，然后向合资企业正确地解释和反馈。

中国监管部门非常关注化工行业。杜邦在合规方面的首要任务是什么？

我刚加入杜邦时，接受了入职培训，我们从第一天起就强调安全。我参加过的几乎每场会议都会提到人员安全问题。合规和以人为本的理念已渗入到杜邦每名员工的DNA中。公司也有一个名为DSS（即杜邦可持续解决方案）的咨询业务部门，为企业提供工作场所的安全培训。全球各地的制造企业都熟悉杜邦安全标准，甚至以此为基准标杆。

中国近年大力加强劳动安全法规和要求，我们也全力以赴，超越规定水平。我们在中国执行世界级的安全标准，将所有员工、商业合作伙伴和承包商的风险降低到最低水平。

法律团队在多大程度上参与上海研发中心的工作？

杜邦以创新为驱动，研发是这一价值观的核心。除了传统研究活动外，我们在中国的研发中心专注于应用和效率，并将销售和营销与产品开发相整合，针对专门的客户需求提供配合方案。

我每次去研发部门总是感到很兴奋。那么杰出的工程师和科学家一同合作，在充满活力的氛围中提出各种新创意。但有趣的是，作为律师，我四处参观的时候总是想着专利、商业秘密、客户保密协议等问题。所以，有法务部的人来，我们的研发同事有时也不由得紧张起来。

玩笑归玩笑，研发、商业法务和知识产权法务团队间的合作非常密切。我们一同合作, 仔细考虑建立知识产权组合的问题，保护我们的技术诀窍，与技术人员签订竞业禁止协议。这是很有成就感的工作，很高兴看到法务部门能为保护科学家的项目和发明出一分力。

杜邦在中国与陶氏化学的合并是否已经完成？

中国商务部尚未对合并作出批准。

我看到杜邦今年六月在深圳启动了新工厂。这一定是很大一笔投资—— 据新闻报道，这将是公司在全球最大的混配厂。能为我们介绍一下新工厂吗？

当然可以。这的确是一个经过深思熟虑的商业决策，对我们而言也是宝贵的经历。法律团队解决了一系列问题，包括进出口、实质性转型、供应链、与商业合作方的现有合同，还有取得供应商和客户的同意。

来自不同业务部门和团队的许多员工团结协作，坚持不懈地付出了大量努力，法律部的贡献只是其中一部分。因为工作会涉及不少监管、合同和人力资源方面的问题， 法律团队可以就法律、政策和审慎减少风险提供意见。

最终，项目圆满成功，大家都为新厂的启动而高兴。这对所有员工而言诚然都是很大的成就，尤其是为此付出艰辛努力的同事们。

（作者：赵修敏）