Highlights of “Breaking Barriers: Trade Challenges Facing Chinese Enterprises” event on 15 April

On the afternoon of 15 April, BritCham Shanghai, in partnership with the SingCham and the Trade and Investment Centre of AmCham Shanghai, hosted Breaking Barriers: Trade Challenges Facing Chinese Enterprises in Beijing Dacheng Law Office (Shanghai).

Stuart Dunn, Executive Director of BritCham Shanghai, delivered the opening remarks. He welcomed attendees and delivered the opening remarks. He welcomed all attendees and thanked the co-hosting partners for their collaboration.

Adolf Peter, Co-Chair of BritCham Shanghai’s Legal & Regulatory Committee and Professor at the Shanghai University of Political Science and Law, delivered the first keynote on “Impact of the CSDDD on Chinese and US Companies”. He provided an overview of the Corporate Sustainability Due Diligence Directive (CSDDD), the Corporate Sustainability Reporting Directive (CSRD), and the proposed Protect the USA Act 2025 (directed against EU sustainability legislation such as the CSDDD)—highlighting the extraterritorial reach of these frameworks and their implications for Chinese companies with European operations or supply chains.

This was followed by an insightful presentation by Jianlin Ni, Partner at Dacheng Law Offices, who discussed the evolving US-China trade dynamics under the America First framework. He outlined the impact of volatile US tariffs on Chinese exports—particularly electric vehicles, solar products, and semiconductors—and the complications arising from country-of-origin rules and supply chain relocation.

The event concluded with a panel discussion moderated by Linian Li, Managing Director of Modern Water China. The panel featured:

• Yong Kai Chang, Managing Partner, Allen & Gledhill China; Partner, Allen Gledhill Singapore
• Hailong Lai, General Director of Legal Department, Shanghai Electric Power Transmission and Distribution Group Co., Ltd
• Dr. Ulrike Glueck, Managing Partner, Head of Corporate Practice Area Group and TMC Sector Group, CMS, China
• Chunyang Shao, Partner, JunHe LLP

Panellists explored strategies for managing trade risks and ensuring legal compliance under increasingly fragmented global conditions. Topics covered included:

• Decoupling & Diversification: Speakers advised Chinese companies to proactively diversify production bases and adopt “China plus one” models.
• Legal Readiness: Several panellists emphasised strengthening legal due diligence capacity, especially in areas such as ESG reporting, export controls, and sanctions compliance.
• Resilient Supply Chains: As global production shifts toward regional hubs, panellists encouraged enterprises to localise operations and strengthen upstream/downstream transparency.
• Technology Investment: Speakers stressed the need for technological upgrading as a sustainable route for China’s industrial competitiveness.

During the interactive Q&A session, attendees raised thoughtful questions on regulatory uncertainty, investment timing, and the evolving dynamics of US-China-EU trade relations. Key takeaways included:

• Tariff Policies and Currency Stability: In response to a query on whether prolonged tariff measures might trigger currency instability, panelists acknowledged underlying pressures but noted that global reliance on the US dollar remains resilient in the short to medium term.
• Investment Strategy: On the question of whether companies should delay investments amidst uncertainty, speakers cautioned against “inaction fatigue” and recommended pragmatic, regionally-aligned investment strategies to sustain business momentum.
• China-EU Comprehensive Agreement on Investment (CAI): Some legal experts suggested that re-engaging in dialogue around the CAI could offer a constructive pathway forward in the context of shifting global trade alignments.

To close the session, each panelist shared a parting thought:

• “Don’t get stuck in a high-stakes poker game; leave the table and find a better one to play.” — Yong Kai Chang
• “We must not panic. The global economy will move forward—and we must prepare to meet it with quality and innovation.” — Hailong Lai
• “Every effort, no matter how small, contributes to collective success. ESG compliance must be taken seriously.” — Dr. Ulrike Glueck
• “Diversify your markets and localise where needed. Build flexible, compliant systems that can weather the unexpected.” — Chunyang Shao

The event provided valuable insights into the current trade environment and offered practical guidance for Chinese enterprises navigating increasingly complex regulatory landscapes. BritCham Shanghai extends its sincere thanks to all speakers, guests, and co-hosting partners for their thoughtful contributions to this timely and forward-looking dialogue.