Institute of the Americas Signs Agreement with Beijing Law Firm to Promote China-Latin America Business Expansion
BEIJING – The Institute of the Americas and DeHeng Law Offices of Beijing have signed a collaborative agreement to assist Chinese businesses in launching and expanding business operations in Latin America.
DeHeng Law Offices is one of the largest law firms in China, with 1,500 attorneys on staff. The firm, which has 23 offices in mainland China, as well as offices in New York, Seattle, Orlando, Brussels, Paris, Munich, Frankfurt, The Hague, Dubai, Sao Paulo, Australia, New Delhi, Seoul and Japan, is also focusing on assisting clients seeking to do business in Latin America.
The agreement between the Institute of the Americas and DeHeng Law Offices was signed in Beijing on July 17, when the two organizations held a seminar in collaboration with the China Overseas Development Association titled, “Investments in Latin America: Focusing on Mexico’s Energy Reform.”
The conference was attended by more than 100 business executives, including representatives of the China National Petroleum Corp. (CNPC), China National Offshore Oil Corp. (CNOOC), the China Petroleum Engineering & Construction Corp., Sany Heavy Energy Machinery Co., China Harbour Engineering Co., COSCO International Holdings Limited, SinoSure and the Bank of China.
The July 17 seminar took place on the day that Mexico’s Senate voted to approve secondary legislation to implement energy reforms. The seminar also coincided with President Xi Jinping’s trip to Brazil, where he attended a BRICS summit and signed a host of economic agreements between China and Brazil.
Mexican Ambassador to China Julian Ventura gave a keynote speech in which he outlined key provisions in Mexico’s energy reforms, saying there are new possibilities for an “action-oriented agenda between China and Mexico.”
Ambassador Ventura told the audience that Mexico’s “oil production declined by 25 percent over the last decade. This situation is not sustainable in the long term and is hampering our progress,” he said. “A common challenge that all countries face is taking the necessary steps to ensure the well-being of our citizens. Energy has to be a driver and not an obstacle in any economy.”
Wu Guoping, a Latin America expert at the Institute of Latin American Studies (ILAS) of the Chinese Academy of Social Sciences, called Mexico’s energy reform “revolutionary because of the impact it will have on Mexico’s economy and its society.”
He said Mexico’s energy reform will have a huge impact on the country’s economy, creating 2.5 million jobs by 2025.
“Energy reform is revolutionary but it also faces challenges,” Wu said, “because nationalism is very strong in Mexico. The reform faces potential challenges from labor unions that have benefitted from long-standing protections in the energy sector.”
Mexican attorney Luis Vera told the audience that Mexico is looking beyond traditional energy sources to shale oil and gas and is planning major exploration projects in northern states such as Chihuahua. “Private investors, including Chinese firms, are buying land,” said Vera, who is the founding partner of Mexico City-based Vera & Asociados. “That is where the big investment is going to be.”
Vera also emphasized the huge potential in renewable energy in Mexico over the next two decades. “By 2030, Mexico must get 35 percent of all its energy from renewables,” he said. “In wind energy, all of the technology comes from China. We have created the market and we are expecting you to be there,” he said.
Francisco Martinez Boluda, a partner in the Beijing office of the Uria Menendez law firm, said, “We are witnessing a change in the relationship between China and Mexico which can be complementary. We think that in 2015, things are going to start to move.”
Harrison Jia, a partner in DeHeng Law Offices, outlined labor laws and work rules in several Latin American countries that set standards for wages, hosing and medical coverage. He told the audience, “Mexico is more flexible than Brazil” in its labor requirements for foreign companies.
Jia attended a two-week Chinese Executive Program at the Institute of the Americas in May 2014 which included a week-long trip to Mexico City where he and other participants in the program met with top Mexican government officials and business executives.
“We want to introduce Mexico so more Chinese companies can go there,” he said.