On September 22, we hosted a seminar at our office with Iolanda Jia, a partner at Haiwen & Partners, a leading Chinese law firm, on the topic “Transactions with Chinese Counterparties Involving Software and Artificial Intelligence Technologies.” Iolanda discussed the specifics of entering into license agreements under PRC law, the importance of conducting legal due diligence on the chain of rights holders, export controls when concluding cross-border transactions involving technology, and the latest trends in law enforcement regarding projects related to the creation and transfer of technology.
The discussion was moderated by KKMP partner Anna Maksimenko. Anna noted:
“We are seeing that issues related to working with Chinese technology companies are becoming increasingly practical—and at the same time, more complex—for businesses. Whereas the primary focus used to be on choosing the right contractual structure and protecting intellectual property, today this is compounded by export controls, cross-border data transfers, sanctions restrictions, and the specific regulatory framework for AI. That is precisely why it was important for us to discuss not only the theoretical aspects of Chinese law but also how to structure transactions with Chinese counterparties while taking all these regulatory frameworks into account. It was particularly valuable that Iolanda shared a practical perspective on the issues companies face when licensing software and technology in China: from verifying the chain of title for technology to allocating responsibility for export and compliance risks. I would also like to highlight the participants’ active engagement. The number and nature of the questions demonstrated just how relevant this topic is. For me, this is a clear indication that businesses today need not just an analysis of individual regulations, but a comprehensive understanding of how to properly structure technology transactions with Chinese partners.”
