Ashley Zhu – GC Powerlist
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China 2019

Ashley Zhu

Legal director, legal and government affairs (Great China scope) | Sephora

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China 2019

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Ashley Zhu

Legal director, legal and government affairs (Great China scope) | Sephora

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What are the most important transactions and litigations that you have been involved in during the last two years?
A wholesale channel integration transaction for two famous internal brands. A pre-transaction legal assessment on the possible legal grounds for an early terminationor obtaining a share buyback of a joint venture company. Closed an IP infringement case at the administrative litigation stage – with criminal responsibility waived as a result.

How do you suggest in-house lawyers build strong relationships with business partners?
First, an in-house lawyer should impress the business with his or her enthusiasm, communication skills and professional demeanour. In-house counsels should also demonstrate qualities that colleagues would like: on time delivery, high quality work, proactivity, a sense of urgency and more. We should be reliable, organised, diligent and dedicated as lawyers, with the ability to work calmly and excel in effective multi-tasking. Meanwhile, an in-house lawyer is someone who has a team player mind-set and the ability to embrace changes and work autonomously. He or she keeps an eye on industry trends, and on top of legal professional ability, he or she always thinks as a “businessperson” and steps into the business as a “legal business partner”, not only doing legal assessment and validation, but also delivering solutions and/or sharing best market practices.

Have any new laws, regulations or judicial decisions greatly impacted your company’s business or your legal practice?
Foreign Investment Law of the People’s Republic of China. Regulations for the Implementation of the Law of the People’s Republic of China on Sino-foreign Equity Joint Ventures. Notice of the Cyberspace Administration of China on Seeking Public Comments on the Measures for Security Assessment for Cross-border Transfer of Personal Information (Draft for Comment). Notice of the Cyberspace Administration of China on Soliciting Public Comments on the Administrative Measures on Data Security (Exposure Draft). The announcement of launching Special Crackdown against Illegal Collection and Use of Personal Information by Apps.

What do you feel are the most effective techniques for getting the most out of external counsel, in terms of how to instruct them?
90% of external counsel are from my trusted external or in-house counsel recommendations. Relatively fixed external counsels reduces communication costs. 10% of external counsel got my attention because of their professional articles, often in more specialised fields. I reach out to that external lawyer who wrote the article (directly or indirectly) and we exchange ideas relevant to business needs and legal issues. The “right” external counsel can make me feel that he or she is the right choice by delivering his or her opinions during preliminary communications.

How do you feel in-house legal leaders can successfully introduce and implement a culture within a legal department?
Establish a team culture of continuous learning by setting up learning plans and objectives, including: purchasing online and offline training resources (both professional and industry), organising regular team brainstorming sessions and meetings to discuss projects, new laws/regulations/judicial decisions, new technologies and more, and sending in-house legal counsels to participate in business projects such as “legal business partners”.

What would you say are the unique qualities required to be successful as an in-house lawyer in your industry?
A quick learner, be curious and open-minded and have an agile business sense.   FOCUS ON… China is an important market for multinational corporations in any industry. I am from the retail industry – various international and domestic beauty brands are being sold in Sephora China Omni channel stores. Contents including but not limited to advertising and other information about our company and/or products should follow a compliance practice that transcends not only laws and regulations, but also common sense, politics and culture in China. Otherwise we pose a risk to our ability of doing business in China, including our relationship with the government, customers and the media. We know there are lessons: Little Red Book was suspended from Android and Apple Stores due to non-compliant contents; The Marriott website in China was temporarily closed after listing Tibet as a country; Versace lost Chinese brand ambassador status amid t-shirt controversy. Those issues warn us that having high quality contents and compliance in China is critical. From my view, initiatives could be: First, a workable control system should be built with a process to make sure business operations are compliant with up-to-date laws and regulations; second, a guide will be very necessary, which should be created to raise awareness of political and cultural issues based on facts and uncontested common sense, for example, sensitivity associated with references to China, Hong Kong SAR, Macau SAR and Taiwan; highlight the risks associated with inaccurate references, give examples of correct and incorrect uses and answer frequently asked questions. Thanks to technology advances, we have been able to purchase tools and products that help us improve accuracy and efficiency: AD checker, web picture scanning, community comments blocker and more. We can use those tools as the first step of artificial intelligence, by designing and configuring systematic solutions with the help of intelligent human brains. Finally, a crisis response mechanism should be set up to rapidly respond to and handle government investigations, public relations crisis, litigations and arbitrations. The value of in-house lawyers may not just focus on advertisement law and cyber security law, we can also step in the strategic map, join in the discussion of how to conduct business in China, layout a security operation process and/or system, deliver a clear direction, and become a business partner and strategic advisor.

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