Cross -border high -standard compliance new thinking

Author:Legal person magazine Time:2022.09.23

◎ Text "Fighter" magazine all media reporter Li Liao

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Since the establishment of the first company in Wuxi, Jiangsu in 1996, German companies Yingfei Ling has been working in China for nearly 30 years. In 2022, Yingfei reached 38%in China's income in China. It can be seen that China has become the largest source of income from Yingfei Ling. For Ying Feiling, not only pays attention to its development opportunities in China, but also hopes to drive the sustainable growth of the Chinese market business through compliance.

As an enterprise in China (hereinafter referred to as the "Yingfei Ling Greater China"), what is the characteristics of its compliance management system? What laws and regulations? On September 1st, the reporter of the "Legal person" interviewed Vice President Ying Feiling and the legal consultant of the Greater China region on these topics.

Choose higher and stricter standards

As a German company, the compliance construction of Yingfei Ling Greater China has started earlier, and more compliance with the EU's laws and regulations and compliance management methods. Today, China has vigorously promoted enterprises to strengthen compliance management and introduced many laws, and also amended the existing laws. Faced with changes, the compliance work of Yingfei Ling Greater China must also change power.

"Legal person" reporter: When will the company's compliance management construction start? What is the development today?

Wang Gangyi: Before 2018, Ying Feiling's compliance construction was guided by the Asia -Pacific headquarters in Singapore, and finally received the German headquarters. After 2018, the Yingfei Ling Greater China, independent in the Asia -Pacific region, established the Legal Department of Yingfei Ling Greater China. Soon after, the compliance officer was established.

Before Yingfei Ling was established in Greater China, Singapore's overall business environment was light management and emphasis on benefits, and there were no tedious compliance rules. However, Yingfeeling is a German company that needs to abide by the EU's strict laws and regulations and compliance management methods. The German headquarters clarified the business behavior prohibited by the European Union, and they would investigate and make corresponding rectification.

"Legal person" reporter: Will we encounter resistance to follow the higher compliance standards?

Wang Gangyi: As an EU company, no matter where the company is opened, it must follow relevant compliance regulations. If illegal regulations will be punished in accordance with global rules, the amount is high and the risk is high. Therefore Compliance boundary.

In the early days, the company encountered and heard some antitrust cases or other regulatory regulatory cases, and found that the cost of unsatisfactory compliance was actually higher. For example, when you do not formulate consistent standards for enterprise sales staff, or do not specify the standards of behavior clearly, you cannot avoid some unsatisfactory behaviors, which will naturally seriously affect the development of the entire enterprise.

Because the European Union's compliance standards are inevitable and the country where the company is located, it will definitely encounter resistance. In the competition, if the compliance is not done well, internal management will not be able to carry out smoothly, and the loss will be greater. Therefore, we would rather do higher and stricter, and we are unwilling to relax internal standards.

"Legal person" reporter: How does such a compliance gene coordinated with the Chinese environment?

Wang Gangyi: For us, we need to communicate closely with the German headquarters. What is the difference between the laws of the company's country and the requirements of the headquarters required by the company's country, whether it will increase unnecessary costs to enterprises in global operations, and whether it will limit the development of the company's normal business in the country. Therefore, we need to discuss with the headquarters, compare the laws and regulations of the two, understand where the difference is, and analyze what changes we need to do.

In addition, the German headquarters does not understand the specific situation of China. We need to communicate with the management of China in China, and clearly communicate the legislative intent, operating principles of Chinese law, and the basic rules and headquarters that the enterprises follow. Due to some differences in legislative concepts of China and Europe, we need to discuss and exchange with local teams who understand Chinese culture and legal environment.

From the end of 2019, our company's law department has launched a quarterly Chinese new regulations for the new Chinese regulations every quarter. Readers have both the management team from the Ministry of Global Law and the executives of Greater China. Continue to share. Only by fully understanding China's law and respecting Chinese laws in Europe and the United States, can they accept and respect China from the heart.

"Three driving carriages" and drive

Many German companies pursue the "four -eye principle" in risk control, that is, "at least 4 eyes are staring at a business at the same time", this concept is also reflected in the construction of the compliance system of Yingfei Ling.

"Legal person" reporter: What are the characteristics of the company's compliance system?

Wang Gangyi: The compliance construction of Yingfei Ling is influenced by German culture. The Yingfei Ling Greater China decomposes the compliance system into three parts, which is completed by the three departments of the Ministry of Law, the compliance officer and the corporate security department. The Ministry of Law is mainly responsible for interpreting the requirements of laws and regulations, explaining and guiding legislation; compliance officers are responsible for all compliance process system management, management of important cases, and final investigations and cases; Guarantee, such as environmental safety, production safety, internal management of enterprises, and investigation of fraud prevention.

For example, the Ministry of Enterprise Protection has personnel who are responsible for export control, but the legal conflict involved in the country needs to discuss with the Ministry of Law. When the daily procedures of export control and the establishment and implementation of the normative procedures, there will be an intervention of joint officials. The parallel "troidee" constitutes the company's large -scale management system. In this way, no matter how powerful the business department is, it is impossible to distort compliance management requirements, because it is difficult to convince the three departments to cooperate with you at the same time. "Legal person" reporter: Is there a challenge for such a compliance system?

Wang Gangyi: There will be challenges. The compliance is divided into three departments, which requires coordination between different departments in implementation. This coordination is not only local, but also may involve relevant personnel on this line. We need to gather everyone, comb the problem, formulate a compliance plan, and sort out a set of compliance roadmaps that are most in line with the requirements of the enterprise. The cost is higher and the time is longer.

Anti -monopoly compliance is the focus of risk aversion

The semiconductor industry has many industry standards, with high entry thresholds, and each industrial chain and every link have many competitors. It is very common that in the industrial chain, a company's competitors may be its supplier or their customers, so they need to pay special attention to antitrust compliance issues.

"Legal person" reporter: As a semiconductor manufacturing enterprise, what areas will face compliance, and how to avoid risks?

Wang Gangyi: As an enterprise, the purpose of compliance is no case and no lawsuit. Yingfei Ling Greater China is a chip manufacturing enterprise. It is faced with compliance in several areas. First of all, antitrust and compliance. Because Company A may be your competitors in a certain field, but in other fields, it may be your supplier and may be your customer at the same time. How to deal with the relationship between the two requires the strict management of the internal compliance of the enterprise, sort out the relationship, and do a strict separation of mutual relationships. In particular, we must pay special attention to the drafting of the contract.

In addition, although Yingfei Ling China is not a TO C company, as long as it is a manufacturing enterprise with a certain scale, there is a network management. It is necessary Risk factor or level standards, formulate internal management specifications, or rectify.

"Legal person" reporter: How to drive upstream and downstream companies to do compliance construction together?

Wang Gangyi: We have zero tolerance on the issue of compliance. We hope that the supplier will follow our supplier's code of conduct and moral standards. If the other party touches the red line in the field of compliance, we must understand the specific reasons for the relevant reasons. Is it a case or a system construction itself.

Compliance is a matter for everyone, and the characters in all links need to create a good compliance environment together. Today, many customers in China have also put forward compliance requirements for us, which shows that Chinese companies pay more and more attention to compliance culture. We found that when we regard compliance as a company from the heart, it is easier to make compliance.

"Legal person" reporter: What are the advice on foreign companies planning to enter the Chinese market?

Wang Gangyi: First of all, we must create a truly localized team, including localization of operators and localization of lawyers. The localized lawyer team understands China's national conditions and can provide the first law guidance and truly reliable suggestions, so that the potential risk analysis can be clearly analyzed, and the enterprise dares to "come in."

Secondly, we must establish a local legal service ecosystem and have a group of legal service experts to provide suggestions for enterprises. Because lawyers cannot be proficient in all compliance issues, and external legal experts' understanding of the law and environment may provide the best proposal plan for enterprises.

Editing ｜ Cui Xiaolin