Zhang Yi – GC Powerlist
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China 2024

Healthcare

Zhang Yi

General counsel, chief compliance officer | China Beijing Tongrentang Group

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China 2024

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Zhang Yi

General counsel, chief compliance officer | China Beijing Tongrentang Group

Team size: 65

How do you approach managing legal aspects during periods of instability or crises to ensure the organisation’s resilience?

During periods of instability or crisis, ensuring organisational resilience requires a proactive legal approach and a well-structured compliance system. As General Counsel and Chief Compliance Officer at Tongrentang Group, I implement the following strategies:

Establishing a Robust Compliance Management System: We have developed a compliance framework rooted in the values of “virtue, integrity, and trust” which are central to Tongrentang’s legacy. This compliance system integrates our traditional values with modern governance standards, ensuring our operations align with ethical and legal requirements even under challenging circumstances.

Strengthening Brand Protection and Intellectual Property: I have led multiple brand protection lawsuits to defend the Tongrentang name, a heritage brand in China, against infringement. These actions have been crucial in safeguarding our intellectual property and reinforcing our brand’s integrity.

Enhancing Internal Control and Risk Management: We regularly update our Internal Control Management Manual to strengthen the role of internal controls in mitigating major risks. This approach ensures a thorough risk management process, helping the organisation adapt and respond swiftly during crises.

Through these measures, we ensure that the company maintains business continuity and compliance even in volatile periods.

What are the main projects that you have been involved in recently?

Recently, I have been involved in several key initiatives aimed at reinforcing Tongrentang’s legal and compliance framework:

Development of the Integrity-Based Compliance Management System: By integrating Tongrentang’s 350-year values with modern governance, we have built a compliance system that reinforces trust and ethical practices. This system strengthens our foundation and supports long-term growth.

Brand Building and Innovation Development Plan: I organised and implemented the “14th Five-Year Plan” for Tongrentang’s brand strategy, which establishes our brand positioning and creates a collaborative brand development mechanism. This plan has ensured that Tongrentang maintains its top position in brand value and reputation, making it a trusted name in traditional Chinese medicine.

Update and Implementation of the Internal Control Management Manual: This project focuses on updating and enforcing internal controls across Tongrentang, enhancing the company’s ability to identify and manage risks proactively. It is a critical step in protecting the organisation from potential legal and compliance risks.

What are some of the main trends impacting the industry sector you work in in China?

The healthcare and pharmaceutical industry in China, particularly traditional Chinese medicine (TCM), is influenced by several key trends:

Increased Emphasis on Compliance and Quality Standards: With stricter government regulations in the healthcare sector, companies are under growing pressure to ensure product safety, authenticity, and compliance with environmental standards. This trend is especially pertinent for TCM companies, where maintaining traditional quality while adhering to modern standards is crucial.

Digital Transformation: There is a rising trend towards digitalising healthcare services and operations. At Tongrentang, we are increasingly adopting digital technologies in production and distribution, which helps enhance efficiency and maintain high standards of product quality.

Rising Global Interest in TCM: Traditional Chinese medicine is gaining global recognition, and this trend offers new opportunities and challenges. Expanding into international markets requires compliance with various foreign regulations, making effective legal and compliance strategies essential.

How do you build relationships with other teams in the company?

Building strong relationships with other teams is essential for effective legal management. At Tongrentang, I prioritise open communication, regularly holding meetings with different departments to discuss legal concerns, project updates, and compliance issues. We also conduct joint training sessions on compliance and legal requirements, which enhances cross-departmental understanding and collaboration. Additionally, for significant projects, we establish cross-functional teams that include legal representation, ensuring that legal considerations are integrated from the planning stage. This approach fosters a collaborative environment where the legal team is viewed as a valuable partner in achieving company goals.

Do you use any ‘legal tech’ products, and if so, for which areas of your work do you find them most useful?

Yes, we utilise various legal tech tools to improve efficiency in multiple areas. For instance, contract management software helps streamline contract drafting, review, and archiving, reducing turnaround times and ensuring compliance. We also use digital platforms for document management and case tracking, which support our team in managing documentation effectively and accessing relevant data promptly. Legal tech tools have become essential in managing the complex compliance requirements of a company like Tongrentang, enhancing our ability to provide timely and effective legal support.

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