China Eastern re-ups with US law firm

Shaoyong Liu (left), chairman of China Eastern Airlines Corp Ltd, and Ai Ai Wong of Baker McKenzie's Singapore office, display a model of a China Eastern jet on Tuesday in New York at a ceremony marking a formal agreement that has Baker McKenzie continue providing legal services to the airline. PAUL WELITZKIN / CHINA DAILY

Chinese companies that expand their operations overseas must navigate a complex business landscape of laws, regulations and taxes in a country they usually know little about. When China Eastern Airlines Corp Ltd began that journey in the 1990s, the company selected Chicago law firm Baker McKenzie for guidance.

More than 20 years later, the two enterprises formally endorsed their business association by signing a cooperation agreement Tuesday that calls for Baker McKenzie to continue providing legal counsel and services to China Eastern as the airline accelerates its global expansion.

"Baker McKenzie is honored to partner with one of the world's leading airlines," James Colihan, managing partner for Baker McKenzie said at a ceremony at the firm's New York offices.

Started in Chicago in 1949, Baker McKenzie now has more than 4,500 lawyers in 77 offices around the world.

China Eastern had revenue of nearly $15 billion last year, 40 percent of which came from the international market. In 2016, the airline provided 131 flights to 21 countries and 45 cities.

Guo Junxiu, general counsel for Shanghai-based China Eastern, said the company is now promoting an internationalization strategy. "During the process, our business around the globe should follow the laws and regulations. So reaching an agreement with Baker McKenzie is a crucial part in our internationalization," he said.

Jackie Lo, a partner in the Beijing office of Baker McKenzie, noted that the firm has worked with China Eastern on many of its major initiatives, including the company's initial public offering in Hong Kong Special Administrative Region and a $450 million investment from Delta Air Lines Inc in 2015.

Eduardo Leite, chairman emeritus and senior partner in New York, said China Eastern has become a key global client, especially in China, for Baker McKenzie.

"China is one of our top three priority locations together with New York and London," said Leite. "We have invested in China starting with Beijing in 1993, and with Shanghai opening in 2002. Having this agreement with an industry leader in China shows that we are a trusted adviser to a top industry leader."

Last month, China Eastern said it will be developing "a Silk Road in air", a flight network with Shanghai as its core hub with Kunming of Yunnan province and Xi'an of Shaanxi province being the secondary hubs and Beijing acting as a pivot.

paulwelitzkin@chinadailyusa.com