SJ’s Speech “Hong Kong” at Lunch and Networking Reception

Below is South Carolina Attorney General Paul at a lunch and networking reception entitled “Hong Kong – Common Law Gateway to China and Beyond for Saudi Businesses” held today (May 19) in Riyadh, Saudi Arabia.・This is Mr. Lam’s speech. , Riyadh time):

Dear guests, ladies and gentlemen,

First of all, I would like to express my gratitude. As the moderator said earlier, I would like to welcome everyone to this networking luncheon hosted by the Ministry of Justice along with other organizations. I would like to take this opportunity to say a few things to explain why we are here and what we need to achieve. But let me start with a very important point. Today’s lunch has a very special meaning for me and the delegation from Hong Kong. Because there are many “firsts”.

This is my first “first” since I took office as Attorney General in July 2022, and this is my first time leading a delegation of lawyers and other industry members on an overseas trip. The second “first” is that Saudi Arabia is our first destination when it comes to this special trip to the Middle East. That is, the first destination becomes the “first” of the second. The third “first” is that we just arrived this morning around 3am, and some people arrived a little later, at 4am or 5am. And this lunch is actually the first event of the entire trip including Saudi Arabia. So it will be very memorable. As the Chinese proverb says, we have many friends from mainland China, so a good start means his 50% of success. So I’m really honored and very happy that so many guests from Saudi Arabia and representatives of Saudi businesses and organizations from mainland China are here to participate in this luncheon.

Well, I see the purpose of this lunch, and perhaps this trip. Of course, as Hong Kong’s Minister of Justice, I would love to tell you a little more about legal services in Hong Kong and what Hong Kong has to offer, but more importantly, we must start by making friends. We have to start by building personal relationships. To build a personal relationship, the first thing you need to do is introduce yourself.

My delegation was probably about 40 people, including all the support staff, although I don’t remember the exact number. Now, this combination is quite unique. First, we have people coming from the government, not just the Department of Justice where I work. I have a representative from Invest Hong Kong, which is the arm of the government responsible for investment promotion, and colleagues who come from the ETO (Hong Kong Economic and Trade Authority), which is responsible for promoting trade around the world. I came all the way from Dubai. and representatives from the Hong Kong Trade Development Board, a statutory body also responsible for promoting trade. As such, there are many organizations seeking to work together to strengthen the relationship between Hong Kong and other jurisdictions.

Apart from representation from the government, there is very strong representation from the private sector. Our firm has approximately 15 lawyers who are among the top lawyers in Hong Kong. They specialize in both controversial and non-controversial business. We have experts in IPOs (initial public offerings) and M&A (mergers and acquisitions), as well as arbitration and litigation experts. I mean, there are all kinds of legal eagles in this room. In addition, representatives from the Hong Kong Stock Exchange and the Hong Kong International Arbitration Center were also invited here.

Now you may be wondering why I invite so many friends here instead of just asking my colleagues to come here, which would be much easier to plan this trip. not. The reason is very simple: we want to show our friends in Saudi Arabia that Hong Kong is truly an ideal place to start a business in Hong Kong. We will have to explore opportunities in mainland China, until the end when unfortunately conflicts will arise, and then we will have to consider where and how to resolve them. We provide packaged and professional services from start to finish. And the representatives of this delegation are, so to speak, experts in different stages of the entire business cycle.

Now, you may have noticed that there is a theme to this talk, and that is actually the theme that I will be using throughout this trip. It’s like “Hong Kong – the common law gateway for Saudi businesses to China and beyond.” I think the term “gateway” clearly symbolizes the fact that Hong Kong plays a very important role in connecting not only Hong Kong but also Saudi Arabia and the Middle East. Hong Kong is not just a destination, but also a starting point or place to go to other parts of China to explore opportunities across the country.

Now, what is perhaps a bit unusual is the intentional addition of the word “common law” before the word “gateway.” And here’s the important point. Because, as the person responsible for promoting legal services in Hong Kong, this is what I really want to emphasize at this luncheon. Now, why is this so important? Why are our friends in Saudi Arabia interested in this?

To answer this question, we may need to take a step back and talk a little about Hong Kong’s history. I think most people realize what I’m about to say, but it’s worth repeating here. Everyone is probably aware of the fact that Hong Kong was ruled by the British for over 100 years, from 1842 to 30 June 1997. Now, the important thing is that during this period of British rule, Britain introduced the common law system to Hong Kong, and the common law system, which has developed over a century, was very popular and well-established. And what happened on July 1, 1997 was that China regained sovereignty over Hong Kong. China has decided to restore its sovereignty in a very unique way, unprecedented in human history. It is to introduce the concept or principle of “one country, two systems”, which means that Hong Kong maintains and maintains a common law system. Therefore, Hong Kong still uses a common law system, which is quite different from the civil law system used in other parts of China.

You may then wonder why the common law system is so important. How does it relate to your business and investment interests? Here we would like to highlight four important characteristics that we should probably keep in mind.

The first characteristic I would like to highlight is that our country has a very reliable, highly reliable and reputable judicial system. Under Hong Kong’s mini-constitution, known as the Basic Law, Hong Kong’s courts have independent adjudication powers, including an appellate court with final judgment authority. This means that any litigation in Hong Kong always ends in Hong Kong and never goes beyond Hong Kong.

And a very special feature worth mentioning is that Hong Kong’s highest court, the Court of Final Appeal, currently has 10 overseas judges, very prominent retired judges from other jurisdictions. I am inviting you as such. Part-time judge. Most recently, a former federal judge from Australia was appointed. We also have retired judges from the UK, Australia and Canada. Before their retirement, they served as chief justices of their respective jurisdictions. And, first of all, I think this is a vote of confidence in the Hong Kong legal system for judges from other jurisdictions. And secondly, it is a symbol and indicator of the quality of justice that Hong Kong’s judicial system can provide. This is my first point.

The second point is that Hong Kong’s legal system provides a very secure regulatory system to protect your financial interests. Based on our country’s Basic Law, a constitutional document, our country guarantees private property rights. Therefore, no one can expropriate your property, not even the government, and under no circumstances can it take your property at its own discretion. and the free flow of capital is guaranteed. Money can flow freely into Hong Kong and freely leave Hong Kong. Therefore, it is a very friendly environment for funds to flow in and out. But we also have a very strict regulatory framework in place to ensure that fraud and illegal activity will not be tolerated. This is therefore a balance between ensuring the free flow of capital, while at the same time ensuring that your money, investments and economic interests are well protected.

Another thing is that Hong Kong is considered one of the cleanest places in Hong Kong when it comes to law enforcement. Therefore, corruption and other wrongdoings that may exist elsewhere in the world are not an issue in Hong Kong. So aside from the actual similar frameworks, it is very directly and well applied and enforced.

Which brings us to point number three. Third, our legal system is very business-friendly. We are business friendly in the sense that the content of our laws is very similar to the civil and commercial laws found in most other countries, particularly in Western countries such as the United States, the United Kingdom, and Western Europe. The simple reason for this is the common law tradition I mentioned. Most of the civil and commercial laws, such as company law and contract law, are almost the same as those in the United Kingdom, Australia, and New Zealand. Importantly, therefore, our set of laws is very familiar to the international business community. But at the same time, we strive not only to preserve our traditions, but also to ensure that our laws are updated to meet new demands.So, just recently, by providing tax incentives, for example, setting up a family office in Hong Kong. introduced new legislation to encourage We also have other measures in place to ensure that we can provide you with the protection you deserve, while also providing a highly attractive environment. Ms Alpha Lau, Director General of the Hong Kong Investment Bureau, will speak after me. I am sure she will provide further information on this point.

But apart from substantive law, what is equally important is that Hong Kong has a very strong legal talent pool. I mentioned earlier that more than 15 lawyers were accompanying me, and that in itself is proof of the strength of the legal community. The legal profession in Hong Kong consists of lawyers and barristers. Barristers are professionals who conduct controversial business. They most often go to court and also participate in arbitration and mediation. Then lawyers are more common in practice. They will be responsible for non-disputed matters such as M&A, IPOs, and providing advisory services. Therefore, what I would like to emphasize is that we have a large number of top quality professionals ready to serve your interests. And what we have to keep in mind is that most of these legal professionals are bilingual, many of us are Chinese, and of course there are many foreigners. Due to Hong Kong’s unique situation, we are not only familiar with the international legal community, but also very familiar with how things are done in mainland China, both culturally and in the business environment. . So I think that’s also an advantage that will benefit you.

Now, the fourth point that I would like to mention about our legal system is that it provides a very close link to both mainland China and the rest of the world. Well, first of all, I would like to talk about how the legal regulations are in place, especially in Hong Kong. The system is connected to the mainland because this is a feature that cannot be copied or found elsewhere. I mentioned earlier that based on the principle of “one country, two systems,” Hong Kong’s legal system is different or separate from the mainland’s legal system, but there is no relationship between two legal systems within the same country. That doesn’t mean there aren’t any. Country. On the contrary, there are currently nine mutual legal assistance agreements linking the two jurisdictions. These connections based on mutual legal assistance agreements are extremely important in protecting the interests of foreign investors and businessmen. Let me give you a very simple example. Under some of the arrangements I have described, judgments of Hong Kong courts on arbitral awards in Hong Kong can be recognized and enforced on the mainland. Therefore, if your business partner is in mainland China and you need to protect your assets there, but you trust the Hong Kong legal system and want to take advantage of the Hong Kong legal system, Hong Kong is the right choice. You can take advantage of our legal system, but you can also enjoy the fruits of successful legal proceedings in mainland China. Currently, these legal arrangements are specific to Hong Kong. This is possible because of “one country, two systems.” So if you go to, say, Singapore or anywhere else, you probably won’t find exactly the same kind of cooperation, arrangements, and convenience.

Taken together, these four characteristics make some sense that Hong Kong is a place to consider to serve as a platform, connector, and springboard to enter the market. Mainland China and beyond. I say “beyond” because we are all aware of the developments and relationships between the Middle East and China, including especially the relationship between Saudi Arabia and China. We have a long friendship spanning over 1000 years. Of course I’m talking about the Silk Road. But I note that last year, in June 2023, your Minister of Investment said in a very important meeting that there would be a modern Silk Road between China and Arab countries, including of course Saudi Arabia. Therefore, the “Silk Road” does not belong to history. It’s not about the past. It also concerns our common future. Therefore, due to the unique characteristics of “one country, two systems”, Hong Kong plays a very important role in promoting better relations between the two countries.

And as you may have noticed, in February last year, Hong Kong’s chief executive led a powerful delegation here. I remember that there were close to 100 people from various fields. Many agreements have been signed and many initiatives are being undertaken. And subsequently, many colleagues from different sectors of government visited Saudi Arabia. Basically, it’s my turn now. And we are talking about establishing an Economic and Trade Office, ETO, in Riyadh, Saudi Arabia. I hope it becomes a reality soon. But the future is very clear and the direction is very clear. I am very confident, and I hope you are as well, that the relationship between Saudi Arabia and Hong Kong will be much stronger and closer than it is now. But it requires some effort. So I’m sure that each of us in this room can make some contribution to making what we have in mind a reality as quickly as possible. It’s a bit of a shame that you only have about 2 hours of time to make friends and talk about common interests at this lunch. This may be a very small step in the grand scheme of things, but I believe it is a small step that will bring us closer to our final destination.

In closing, I hope you all have an enjoyable lunch. I hope I can make some friends and strengthen our relationship. If you have any questions about Hong Kong, our Hong Kong friends sitting at your table will be happy to answer them. And I’m sure they will give you a good answer. And of course, we are very interested in hearing from you about your situation in Saudi Arabia. I think that in order to make friends, we must first get to know each other. Thank you very much.

Ends/Sunday, May 19, 2024
Published at 23:40 Hong Kong time

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