Legal manager | Shenzhen Shokz
Pan Yinlin
Legal manager | Shenzhen Shokz
How do you approach managing legal aspects during periods of instability or crises to ensure the organisation’s resilience?
As legal counsel, I recognise the importance of being involved from the outset in crisis planning and response. It is essential to ensure that legal considerations are integrated into the decision-making process, enabling us to identify and address potential legal risks at the earliest opportunity.
We take proactive steps to prevent crises by focusing on several key areas. First, the Legal Department regularly provides training to key personnel on legal risk management during crises. This ensures employees are aware of their legal obligations and are prepared to handle any legal challenges that may arise.
We also maintain strong communication channels with government departments in areas where corporate crises are more likely to occur, such as the Consumer Protection Committee, the Industry and Commerce Bureau, and the Food and Drug Administration. These relationships are crucial for ensuring we remain aware of any potential legal risks.
In addition, the Legal Department works closely with the crisis management team, both internal and external, to align our legal strategies with broader crisis management efforts. This collaboration involves coordinating communication strategies, conducting risk assessments, and guiding decision-making processes to ensure that legal considerations are always in the loop.
Another critical aspect is our ability to identify, assess, and mitigate risks that could lead to legal liability. We are particularly focused on risks related to product quality, false advertising, tax non-compliance, corporate crises, and legal violations such as antitrust or anti-bribery issues, as well as crises arising from group disputes or political events.
Our approach is structured within a crisis management framework that encompasses four key phases: preparation, response, recovery, and learning. During the preparation phase, we develop a crisis management plan, conduct thorough risk assessments, and ensure that key personnel receive training. The response phase focuses on taking immediate action, such as activating the crisis management team, communicating with stakeholders, and implementing contingency plans.
Throughout the crisis, the legal department plays a pivotal role in managing legal liabilities, ensuring compliance, reviewing and renegotiating contracts, conducting risk assessments, and communicating with all stakeholders involved. Following the crisis, the recovery phase focuses on restoring normal operations and addressing long-term impacts. This includes implementing more effective internal controls, conducting compliance audits, and refining crisis response plans to be better prepared for future crises.
By following these practices, organisations can effectively manage legal affairs during times of instability or crisis, ensuring resilience and continuity in their operations.
What are the main projects that you have been involved in recently?
Recently, I have been involved in several key projects. One of them is a compliance initiative focused on the launch of new products in 2024, which includes ensuring data protection, product design compliance, and advertising compliance. Another significant project is the restructuring of the group’s global organisational structure, which involves reviewing and realigning our internal frameworks to better support our global strategy. Lastly, I am working on upgrading our contract management system to streamline processes, improve efficiency, and ensure consistency across the organisation.
What are some of the main trends impacting the industry sector you work in in China?
The Chinese government has shown strong support for the global expansion of enterprises, with recent notices from the Ministry of Commerce promoting cross-border e-commerce development. The government encourages qualified regions to explore the establishment of cross-border e-commerce service platforms, which include providing legal and tax resources for businesses venturing abroad. This support has enabled a growing number of Chinese high-tech companies to access more resources for their overseas ventures, thereby stimulating the legal market related to foreign operations. As a result, the cultivation of foreign-related legal talents in China has gained increasing importance.
In the electronic consumer industry, China has also strengthened regulations addressing new fields and emerging issues. The newly promulgated “Regulations on the Implementation of the Consumer Rights and Interests Protection Law of the People’s Republic of China” introduce specific provisions for areas such as prepaid consumption, live-streamed commerce, misleading terms in contracts, order manipulation, data privacy concerns, automatic renewals, and forced tie-in sales. These regulations improve mechanisms for resolving consumer disputes by focusing on resolving issues at the source. For example, they require operators to take initial responsibility for inquiries, encourage advance compensation, and promote online dispute resolution. For consumer-facing enterprises like Shokz, these updates necessitate a faster pace of compliance across various sales channels. Adhering to these regulations can not only help companies avoid legal pitfalls but also enhance consumer trust and reputation.
What is a topic (business-related or otherwise) that you are passionate about, and why?
The topic of legal issues faced by Chinese companies expanding overseas interests me for several reasons.
Firstly, there is the globalisation trend. With the deepening of global economic integration, Chinese enterprises expanding abroad has become an inevitable part of the modern business landscape. By venturing overseas, companies gain access to new opportunities and resources, reduce risks, and strengthen their international competitiveness.
Secondly, the complex international environment poses challenges. Different countries have varying cultural backgrounds, business environments, laws, and regulations, which means that companies must make thorough preparations and plans before expanding abroad.
Thirdly, legal risk management is crucial. Chinese companies may encounter legal challenges such as financial risks, foreign exchange risks, and anti-money laundering issues when operating overseas. Effectively managing these risks is vital for the success of their international ventures.
Additionally, geopolitical impacts are significant. The increasing geopolitical tensions and more stringent regulatory environments worldwide are substantial challenges for Chinese companies expanding overseas. Navigating these complexities requires careful attention to international relations and legal requirements.
Compliance is another challenge. Enterprises must ensure compliance with the fiscal and tax regulations, industry-specific requirements, and environmental laws of the countries they enter, as well as labour rights protections. This can be a complex and resource-intensive task.
The cultural and legal differences encountered when doing business overseas are also important. Differences in hiring and firing practices, local labour movements, and other societal norms require companies to invest time and effort in understanding and adapting to local cultures to ensure smooth operations.
Lastly, intellectual property protection is critical. IP plays a vital role in the competitiveness of a company, and managing its protection on a global scale is essential for Chinese enterprises. Ensuring robust IP protection in foreign markets is a key concern for companies seeking to maintain their competitive advantage.