"2024 will be another challenging year for inbound investment, but perhaps with some new opportunities absent in 2023. Look for further efforts by foreign investment regulators to improve the investment environment for foreign companies, including through the easing of investment restrictions in the telecoms and other sectors, greater transparency in the implementation of data and other regulations, and new investment incentives. These efforts may contribute to an uptick of new FDI, especially in life sciences and other less sensitive sectors. Corporate failures in the property and other sectors as the Chinese economy continues to struggle may offer bargains to foreign investors – and we can expect to see continuing efforts both nationally and locally to improve insolvency and bankruptcy processes. Some foreign investors will be drawn back to China as they discover that rebalancing their investment portfolios in favour of SE Asia and other markets outside China is not as easy as expected. At the same time, one should not expect a significant easing of geopolitical headwinds. Aggressive enforcement of national security rules will continue, if less noisily than in 2023. And some foreign investors already in the market will continue to exit, in some cases following restructurings of their businesses."

Paul McKenzie, Morrison Foerster, Beijing and Shanghai

"We expect some MNCs to further revisit their China strategy in the face of increasing labour costs, geopolitical tensions, and a competitive landscape, coupled with ongoing concerns on China's business environment, IP protection and supply chain security. Middle Eastern investors, however, may further enhance their economic ties with China through investment in both private and public markets, which may partly offset the deficit of inbound investment from the US and EU. Foreign investment into PRC listed companies via GDRs may become less attractive to A share listed companies in 2024 in light of the new GDR rules released in 2023. Regulatory moves to slow down A share IPOs and further restrict selling down in the secondary market may limit exit channels for investors but also may encourage alternative growth strategies such as mergers and acquisitions and backdoor listings. The newly amended Company Law, which will take effect on 1 July 2024, includes considerable changes to protect the rights and interests of creditors and shareholders and to improve the corporate governance regime via, amongst others, enhanced fiduciary duties of directors and senior management of the companies and additional information right and exit right of minority shareholders. Chinese outbound investment will be facing heightened foreign investment control scrutiny, with an increasing number of jurisdictions introducing new regimes, tightening existing rules, or intensifying enforcement."

John Xu, Linklaters, Shanghai

"M&A and FDI lawyers lamented a sluggish 2023 in China. However, in the closing months of 2023 we have seen renewed interest, at least on the part of Chinese companies, to invest abroad. In 2024, we expect Chinese authorities to coax back foreign investment in part by further relaxing market entry restrictions on foreign investment and continuing to level the playing ground by increasingly affording FIEs in China national treatment. Existing FIEs will likely need to contend with an amended Company Law, which will take effect on 1 July 2024. The amendment makes changes to organizational and governance structures, as well as a host of other changes, including, most importantly, a specific time limit (that is, within 5 years of the limited liability company being established) as to when a shareholder needs to make its contribution to the registered capital. Existing Sino-foreign joint ventures will also need to ensure they are compliant with Company Law requirements as 2024 is the last year of the 5-year transition period set in the FIL. For many this will be mostly a housekeeping issue, but for some opening the door to changing the joint venture contract may trigger broader discussions as joint venture partners re-read their contracts."

Mark Schaub, King & Wood Mallesons, London

"Geostrategic concerns will drive trade policy and strategy in Asia in 2024. The Biden Administration may advance its 'small yard, high fences' strategy of cutting off China's semiconductor and supercomputer sectors from advanced chips, foundry equipment, design software, and talent, while new outbound investment restrictions may choke off access to Wall Street and Silicon Valley for China's AI, semiconductor, and quantum computing efforts. Chinese firms acting contrary to U.S. security and foreign policy goals face designation on the Entity List (curbing access to US products and technology), the Chinese Military Industry Company list (curbing access to U.S. investment), or the Specially Designated Nationals List (curbing most access to the U.S.). China has wielded its new arsenal of export controls, sanctions, and counter sanction blocking measures sparingly, perhaps wary of spooking the foreign investors it woos. Post-pandemic preoccupation with supply chain resilience and US-China tensions are driving many firms into Southeast Asian markets, where regional leaders remain apprehensive of being compelled to 'choose sides.' It remains to be seen how China's domestic economic challenges will affect its regional overtures under the Belt & Road Initiative or the Regional Comprehensive Economic Partnership, while U.S. electioneering will colour U.S. engagement through the Indo-Pacific Economic Framework and direct dealing with China."

Nathan Bush, DLA Piper, Singapore

"We expect that frequent economic and trade frictions in the context of grand cooperation will characterize China-EU trade relations in 2024. At the 24th China-EU Summit, China and the EU reaffirmed their commitment as comprehensive strategic partners with each other and held consensus on fundamental issues. At the same time, however, the EU is strongly concerned about the 'growing trade imbalance,' positioning China as a technology competitor. As a result, cooperation will be the keynote, but friction is inevitable. The EU is committed to becoming the world's first climate-neutral continent and has developed the 'Fit for 55' package to that end. Taking the European Green Deal as an opportunity, the EU seeks to invigorate domestic industries, particularly those related to sustainable development. In related industries such as new energy vehicles, renewable energy and so on, China has the ability to compete. We expect the EU will suppress the development of China's manufacturing industry through a series of actions to support the development of their local industries, including the Anti-Foreign Subsidies Regulation, the EU market access requirements related to supply chain security compliance, the Conflict Minerals Regulation, the Regulation concerning Batteries and Waste Batteries, in addition to traditional trade remedy measures such as countervailing and anti-dumping investigations."

Yang, Chen, Jincheng Tongda & Neal, Beijing

"Regulatory compliance serves the purpose of implementing macro policies in many countries, and China is not an exception. The Central Committee of the Communist Party of China discourages relying on lawsuits to resolve disputes and instead promotes preventive measures. In this context, many companies, particularly state-owned enterprises, may wish to place more emphasis and resources on corporate compliance. In terms of anti-corruption, after the intensive campaigns launched in the healthcare sector in 2023, people may reasonably expect the focus of law enforcement to extend to the financial sector in 2024. In the area of data security, after having accumulated many years' experience, the regulators may enhance clarity and certainty in data law enforcement, including in relation to the perennial problems of cross-border data transfers."

David Pan, Llinks Law Offices, Shanghai

"In 2023, the high-tech industry faced stricter algorithm, data, and ethics regulations. With the rapid rise of AI, the Chinese government has issued three important regulations that only address specific use cases. The State Council plans to introduce a draft AI law in 2024, signalling increased oversight. National Standards on AI have been issued, with more anticipated in 2024, covering training, security, curation, watermarking, and filtering. Ethics review activities will increase within the high-tech industry. Regulators may intensify the enforcement of mandatory security reviews for AIs and algorithms, potentially excluding non-reviewed apps from app stores. The sharing economy may receive support from financial regulators keen to spur growth in the private sector. Changes in data export restrictions are also expected, with the cyberspace regulator likely creating exemptions while other regulators impose targeted restrictions on important data. Regulated compliance audits for data may become mandatory and promote standardised data protection practices across companies. The evolving legal landscape in China suggests that 2024 will be a dynamic regulatory environment."

Samuel Yang, AnJie Broad Law Firm, Beijing

"The final version of the amended Company Law introduced several changes that could impact corporate compliance obligations in 2024 and beyond, most notably, by requiring limited liability companies with over 300 employees to include employee representatives on their board of directors or supervisory board, which could increase pressure on larger companies to upgrade compliance measures around related party transactions, executive compensation, and information disclosures. The amendment also allows the establishment of an audit committee within the board that could replace the supervisors in some cases, imposes responsibility on the board of directors to verify and urge the payment of contributions from shareholders, holds directors, supervisors and senior managers jointly and severally liable if a shareholder improperly withdraws its capital contributions, and permits any director who executes affairs of the company to serve as its legal representative. Corporate compliance teams should utilize the period before the amendment takes effect 1 July 2024 to implement new protocols and controls, monitor capital flows, update governance documents, and so on. We also expect new legislation or judicial interpretations on climate change mitigation, common prosperity, and other priority policy areas that could impose ESG-related compliance duties on companies. Finally, FIEs that have not yet revised their organizational form will need to initiate the changes before the grace period under the FIL expires."

Dr. Falk Lichtenstein, CMS China, Beijing

"In 2024, we anticipate that the State Administration for Market Regulation (SAMR) will continue active antitrust enforcement and merger review, implement the new notification thresholds, introduce further implementing rules on a range of issues such as the call-in procedure for mergers, gun-jumping fines and corporate compliance programme. Certain trends that emerged in 2023 (for example, SAMR's foray into no-poach agreements and below-threshold transactions, closer scrutiny over mergers between domestic firms), will likely continue in 2024. In the broader context of boosting confidence in economic growth, SAMR will also increasingly employ, in suitable cases, 'soft' measures such as issuing compliance guidelines, sending compliance reminders, and holding disciplinary talks in lieu of levying fines. Building on past years' active private antitrust litigation, the Supreme People's Court and lower courts are poised to adjudicate ground-breaking disputes and finalise new judicial interpretations. The business community calls for better linkage and alignment by the administrative and judicial branches when driving antitrust enforcement, so that there will be a consistent steer on companies' compliance efforts."

Fay Zhou, Linklaters, Beijing

"I see three areas of Chinese antitrust law developing in different directions in 2024. In merger control, the existing 'two track system' for merger review may become even more visible. It may become even easier to obtain clearance for simple cases. Indeed, SAMR has been drafting related implementing rules that may be enacted in 2024. Conversely, it could get even more difficult to get very complex or sensitive transactions cleared quickly and without 'side effects.' In relation to restrictive agreements and abuse of dominance, I do not expect ground-breaking developments in terms of enforcement in 2024. SAMR and its local offices understand the economy is stuttering and may not want to send the wrong signals to market players, including foreign investors, through frequent, heavy-handed antitrust enforcement investigations. The biggest 'wild card' for antitrust developments in 2024 may lie with private antitrust litigation. As in past years, there was only a modest number of antitrust-focused lawsuits between private companies in 2023. However, an abuse of dominance lawsuit against Amazon brought by a Chinese goods supplier before a Guangzhou court could be a game-changer. If the court asserts jurisdiction, it could open the floodgates for private antitrust lawsuits against foreign companies in China."

Adrian Emch, Hogan Lovells, Beijing

"2023 was the year of cross-border data transfer restrictions. At the beginning of the year, some sought to pass the data security assessment procedure to gain peace of mind for two years, while at the end of the year others rushed to conclude and file standard contracts to satisfy the requirements once and for all. In 2024, we expect to see changes to both processes. What remains is the market's demand for an easing of China's security concerns with relaxed formalities and easier outbound transfer capabilities. On the other hand, administrative enforcement efforts will likely be intense in 2024 in relation to routine business operations and results-driven events. The annual data compliance audit procedure, which should be finalized in 2024, could provide a welcome tool to help counter these enforcement risks. Lastly, what deserves attention in 2024 also includes administrative efforts to invent new data property rights and data opening and sharing mechanisms, though these efforts are in their early stages."

Vincent Wang, Global Law Office, Shanghai

"After over a year's evolution, the regulatory landscape on cross-border data transfers still seems unsettled with the release of a draft regulation back in September proposing significant changes. Whilst the market still hopes that the data export rules will be relaxed in the new year, in the absence of any official announcement speculation has arisen as to whether the Cyberspace Administration of China (CAC) will relax it to the extent that we saw in the draft regulation. New regimes, such as personal information protection audits, may also start to be implemented. This is likely to be coupled with increasing enforcement, where local CAC offices will take a more active role. On data security, we expect the CAC, other ministries, and local governments to give it a higher priority and release more regulations, and amongst them the Ministry of Industry of Information Technology leads the way and is expected to be the first ministry to implement the data security regime."

James Gong, Bird & Bird, Beijing

"China's cross-border data transfer regulations evolved rapidly in 2023, and we expect to see continued focus on international data flows in 2024. Once the new draft provisions on regulating cross-border data flows are finalized and implemented, the thresholds for companies to adopt a transfer mechanism will be increased, therefore fewer companies will be subject to the requirements to file for a security assessment or to adopt the Standard Contract. It remains to be seen how certain exemptions contemplated in the new provisions (for example, human resources management, and contract necessity) will be applied in practice. Furthermore, with China's first generative AI measures finalized in 2023, we expect that in 2024, China will issue more implementing rules and standards in relation to generative AI services."

Luo, Yan, Covington & Burling, Palo Alto

"In 2024, GenAI will continue to be a key driver for digital transformation. While most businesses seeking to deploy GenAI in their operations will continue to focus on internal governance matters, companies at the forefront will likely move toward large-scale substantive deployment. We expect China to continue to encourage public and private collaboration in AI to further promote innovation and build on its existing regulatory framework, in particular it will be interesting to see China's regulatory response to international legislation such as the EU Act. AI liability will also be worth watching closely as disputes arise while companies continue to expand their use of AI. Chinese courts have also started to hand down decisions, which may shed more light on AI risks and liability allocation. The rise of GenAI in China has led to a huge number of market players building their own large language models (LLM), all of which need training data to succeed, and we are likely to see an increase in data exchanges and perhaps some of China's big tech companies pulling ahead as developers leverage a select number of LLMs in their AI solutions. Similarly, we may see an increase in cross border opportunities, especially for MNCs, as foreign interest in China's domestic GenAI grows."

Lauren Hurcombe, DLA Piper, Hong Kong

“In 2024, as the submission of the security assessment becomes a prerequisite for GAI products to go live, we expect the security assessment, which is the responsibility of the CAC, to be strengthened and clarified through practice and additional guidance. We expect the security assessment to focus on content security, data security, and IP risk prevention and control, while the guidelines will provide more detailed requirements on the transparency, accountability, and security measures of GAI products. In addition, with the implementation of the Trial Measures on Science and Technology Ethics Reviews (Scientific Ethics Review Measures) and other regulations, GAI companies will need to pay attention to the effective interface of various compliance obligations, including personal data compliance audits, algorithm filings, sci-tech ethics reviews, and so on. Finally, we expect to see a significant increase in GAI-related litigation, including copyright and unfair competition litigation. As legislation lags behind innovation, market participants will be inclined to use litigation to clarify the boundaries of their legal responsibilities."

Cai, Peng, Zhong Lun Law Firm, Beijing

"We can expect the CAC to place increased emphasis on enforcing compliance with obligations for generative AI services as outlined in the Interim Measures on the Administration of Generative Artificial Intelligence Services (effective from August 2023), including the obligations for content regulation, data protection and algorithm filing. Service providers with a large user base are more likely to be the focus of such enforcement activities. It is also anticipated that more detailed implementing standards will be established in 2024. For instance, the draft standard titled Basic Requirements for the Security of Generative Artificial Intelligence Services released for public comments by TC 260 in October 2023 may be adopted in the coming year."

Marissa Dong, JunHe, Beijing

"We are expecting 2024 to be fairly busy in the IP sector. In the patent space, we saw the rollout of the long-awaited Patent Law Implementing Regulations and a revision to the Patent Examination Guidelines in mid-December 2023, so our sights will be set on the issuance of new and potentially impactful FRAND-related judgments from the People's Courts (with the trend potentially kicking off with the OPPO v. Nokia ruling from the Chongqing Intermediate People's Court also in December 2023). The copyright space is likely to be defined by further clarifications around the standards for the protection of AI generated works, with the People's Courts issuing judgments elaborating on the protection standard articulated in the recent (and dare I say, controversial) Li. v. Liu judgment issued by the Beijing Internet Court in November 2023. For trademarks, we are all eagerly awaiting the circulation of a second-round draft revision of the Trademark Law (with the last revision circulated in January 2023), but it is likely to be at least another year or so before we see anything akin to a final or near-final draft."

Scott Palmer, Perkins Coie, Beijing

"In 2024, we expect significant amendments to several Chinese IP laws and AI-related laws and regulations. First, in terms of the IP legal system, we anticipate that the Anti-Unfair Competition Law (2019) will be updated and that the 5th amendment to the Trademark Law may also be adopted. Meanwhile, amendments to the implementing regulations of the Copyright Law are also in process after the Copyright Law was revised in 2020. In the AI-related legislative area, we note that the Artificial Intelligence Law was included in the State Council's legislative agenda for 2024-25, showcasing the nation's strategic focus on legislation in the field of AI. Apparently, how to implement the new regulations related to the Copyright Law and address the challenges caused by Generative AI have become matters of high priority to the country."

Seagull Song, King & Wood Mallesons, Beijing

"We believe that 2024 will be a year of both opportunities and challenges. We anticipate that the industry's business development activities will remain active, especially for innovative pharmaceuticals and medical devices. For drugs, out-licensing deals will remain predominant, while for medical devices and medical aesthetics products, there will still be a fair number of in-licensing deals. In addition, we anticipate that HGR compliance may continue to be a topic of concern in 2024, especially in relation to international collaboration scientific research. Also, pharmaceutical companies and CROs are advised to be more cautious in selecting clinical sites in 2024, after the NMPA released new rules on the inspection of clinical sites in November 2023. Enterprises engaged in scientific research in life sciences, medicine and AI may wish to closely monitor any guidelines or detailed rules revealed by local authorities in 2024. This is crucial for fulfilling their obligations under the new Scientific Ethics Review Measures, which became effective in December 2023, particularly for those conducting 'sensitive' scientific research who are required to establish internal ethics review committees. Lastly, the medical anti-corruption campaign of 2023 has not ended yet, and the industry may see more enforcement activities, especially regarding the use of health insurance funds."

Aaron Gu, Han Kun Law Offices, Shanghai

"We identify gene and cell therapies as an important growth area. The HGR implementing rules eased regulatory oversight of basic research and clinical development on human biological materials, various provincial governments, including Beijing, Shanghai, Tianjin, and Shenzhen, announced favourable policies and issued detailed regulations to encourage investment in gene and cell therapies, and hospitals are encouraged to conduct clinical studies on gene and cell therapies and offer patients compassionate use of experimental products, though, as foreign investment is not yet allowed in this sector, these changes will most likely benefit Chinese companies that invest in gene and stem cell therapies. We also expect the National Medical Products Administration to continue to enhance the enforcement of quality management over the total product life cycle by subjecting marketing authorization holders, contract manufacturers, and distributors and users of drugs and devices to more detailed and rigorous standards of quality management and to increase the frequency of pre-approval clinical study audits and post-approval inspections to ensure full compliance. Finally, the industry can look forward to improved access to health and medical data as the CAC balances privacy risks and access to health and medical data, likely unleashing more potential for China's participation in global development programs."

Katherine Wang, Ropes & Gray, Singapore

"In 2024, China's financial regulatory policymaking will focus on two key areas: strengthening financial regulations and promoting high-level opening-up. In terms of strengthening financial regulations, the replacement of the China Banking and Insurance Regulatory Commission with the new financial regulatory body, the National Financial Regulatory Administration, or NFRA in 2023 is expected to enhance efforts in protecting investor interests and cracking down on illegal financial activities through stricter regulations and law enforcement. The China Securities Regulatory Commission (CSRC) will continue to prioritize the stability of securities and futures markets, including implementing measures to suppress short selling and speculative activities. Additionally, following the promulgation of the Regulations on the Supervision and Administration of Private Investment Funds in 2023, the CSRC will issue implementation rules and refine existing regulations for private investment funds. These new or revised rules are likely to focus on encouraging higher-quality fund managers while restricting lower-quality ones. Lastly, alongside the tightened regulation of financial markets, regulatory authorities are expected to optimize and facilitate foreign market access into China. This includes initiatives like granting licenses to wholly foreign-owned brokers or asset managers as well as improving cross-border investment initiatives, with the objective of attracting more foreign financial institutions and long-term capital to invest and operate in China."

Natasha Xie, JunHe, Shanghai

"In February 2023, the CSRC introduced new filing rules for the administration of overseas securities offerings and listings by China-based companies. These rules signify a shift toward a unified filing system for overseas offerings and listings by China-based companies. Before these new rules, only enterprises incorporated in mainland China or ultimately controlled by a PRC entity needed to obtain CSRC approval for their overseas offerings and listings, while most China-based companies owned or controlled by entities outside mainland China (that is, with a 'red-chip' structure) did not. By the end of 2023, approximately 160 enterprises had filed under these regulations and about 70 of these enterprises successfully completed the filing procedures. In that time, enterprises and regulators, along with underwriters, legal counsels, and other intermediaries involved in these overseas offerings and listings, gathered substantial practical experience. It appears that the CSRC filing process is gradually evolving into a more routine supervisory procedure, fostering predictability for all market participants. Despite the ongoing challenges in global capital markets and geopolitical influences, we are optimistic that the CSRC's procedures will not pose significant hurdles for enterprises seeking to go public in offshore capital markets. Our hope is to witness a resurgence in the overseas offering and listing activities of China-based enterprises in 2024."

Lin Gui, Han Kun Law Offices, Beijing

"China faced a challenging economic environment in 2023 as net foreign investment was negative for the first time in over two decades. As it will take time to recover, we expect companies to continue to face revenue pressures in 2024 as businesses compete for diminished customer demand with trimmed resources. Human relations tend to be difficult to manage during these times, as companies put more emphasis on improving work efficiencies and job performance, but workers are more likely to resist or challenge performance management with fewer job opportunities elsewhere. There will likely be more disputes around redundancies involving low performers. In addition, we are seeing more internal conflicts as more pressures mount around different levels of organisations and people start to point to other issues within the company, which will give rise to more internal complaints and investigations. Complaints about discrimination, harassment, ethical, and compliance issues will increase."

Johnny Choi, DLA Piper, Beijing and Hong Kong

"With the economy continuing to struggle at the end of 2023, we anticipate that many companies will continue to restructure their operations in China in 2024, thereby leading to reductions in force. When carrying out reductions in force, companies will have to consider not only the relevant legal issues, but also strategically plan for how to deal with difficult employees as employees become more sophisticated and insistent in their demands, as well as plan for how to deal with local government authorities if the scale of the lay-offs is particularly large. We are also seeing an increase in employment litigation, and this trend will likely continue into 2024. While unlawful dismissal claims will continue to be the most common type of employment lawsuit, bonus and equity-incentive related disputes will become increasingly common in the future as the amounts at stake in these types of disputes grow larger."

Jonathan Isaacs, Baker & McKenzie, Hong Kong

"2023 witnessed a long downturn in China's real estate market. The government launched various programs aimed at stabilizing the real estate market and boosting consumer confidence, including broadening the class of first time home buyers eligible for preferential loan interest rates, reducing the percentage of first instalment payments and interest rates for first home purchasers, lowering the minimum interest rate for second home purchasers, and refunding the personal income tax, for a term of two years, to home purchasers who purchase a home in the same locality within one year after the sale of a previous one. The government also permitted real estate developers with mature loans to extend the loan maturity date until the end of 2024, encouraged the construction and supply of affordable housing, and guided local governments to launch a variety of stimulus policies for affordable housing. Moreover, it expanded the scope of public REITs, on a pilot basis, to include consumer infrastructure such as department stores, shopping malls, and agricultural marketplaces. The Shanghai and Shenzhen stock exchanges are exploring the introduction of private REITs to supplement public REITs and the first private REIT product is under way. We hope these policies will gradually play an effective role in 2024."

Nancy Zhang, JunHe, Beijing

"The overall real estate market fared slightly better in 2023 despite several high-profile debt defaults that held down values for end purchasers. The authorities circulated a consultation draft of a national real estate registration law, which may assist with data efficiency in the planning and execution of government and private programs. We also expect a renewed emphasis on supply-side financing and governance to ensure easier and equal access by State owned and private real estate companies, to promote efficient consolidation and reorganizations, to reduce delivery failures, and to resolve the risk of bond defaults by large real estate companies. In relation to inbound investment, the negative impact of the pandemic on foreign investment and international supply chains has not yet been reversed, and the outlook for 2024 seems no better, if only because the global outlook is likewise generally pessimistic. We do foresee, however, the government's affordable housing program continuing to occupy centre stage through incentives such as lower land premiums, easier construction financing, lower profits tax, and so on, and we may see an expansion in the conversion of commercial properties like offices, hotels and malls to affordable residential or dual use properties."

Andy Yeo, Mayer Brown, Shanghai

"While the market awaited the new Arbitration Law, there were a series of other landmark developments in 2023 that carry a far-reaching impact on the resolution of cross-border disputes in 2024 and beyond. The Convention Abolishing the Requirement of Legalisation for Foreign Public Documents, or the Apostille Convention, which took effect in China on 7 November 2023 will significantly simplify the process of authenticating foreign public documents for PRC court and arbitral proceedings. The amended Civil Procedure Law, which took effect on 1 January 2024 revises a range of provisions on jurisdiction, cross-border service, overseas evidence collection, and the recognition and enforcement of foreign judgments and awards. The Foreign State Immunity Law, also effective from 1 January 2024, marks a departure from the absolute immunity doctrine previously followed by the PRC and adopts the restrictive approach of many other jurisdictions. The Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region, signed in January 2019 will finally take effect in Hong Kong on 29 January 2024, and hopefully in the Mainland later in 2024, establishing a more comprehensive mechanism for the mutual enforcement of judgments in Mainland and Hong Kong."

Ye, Weina, Herbert Smith Freehills Kewei Joint Operation Office, Shanghai

"Following the high-profile scandal linked to the digital asset exchange platform JPEX and the new regime in Hong Kong aimed at regulating crypto trading platforms, we expect regulators in Hong Kong to take a more proactive and robust approach towards managing the risks associated with digital assets. Cyber fraud will remain prevalent in the evolving landscape of digital assets. As China continues to issue new provisions and guidelines and refine its legal framework for cybersecurity, data protection and data privacy, these will be among the most concerning areas organisations based in China will face in cross-border litigation and arbitration in the year ahead. Whilst there has been a decrease in court cases in Hong Kong in recent years due to the growing popularity of arbitration, the 2019 Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region, which will come into force in January 2024 to ease the enforcement of Hong Kong court judgments in Mainland China, will provide incentives for parties to litigate in Hong Kong when Mainland Chinese assets are involved."

Kevin Hong, Norton Rose Fulbright, Hong Kong