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DOING BUSINESS IN ASIA RIDING THE PACIFIC WAVE Even in the midst of this economic downturn, Canadian law fi rms fi nd niche markets in East Asia. BY MILTON KIANG T he 21st cen- tury is said to be the Pacific century. Here's why: accord- ing to Asia-Pacific Economic Cooperation, member countries contribute nearly 54 per cent of the world's GDP and drive about 44 per cent of the world's trade. Sixty years ago, China was a new- ly-formed People's Republic of China, Japan was rebuilding its shattered economy from the Second World War, and Korea was on the brink of a four-year military conflict which would liter- ally tear the nation apart. Today, companies like Samsung, Hyundai, Sony, Toyota, and Lenovo have become household names. Every industrialized nation is scrambling to strengthen trade ties with China, and Canada is no exception. And wherever commerce and trade go, law firms are sure to follow. Of the top 10 Canadian law firms by size, six have a dedi- cated Asia Pacific or China practice group. Canadian law firms either focus on inbound work, outbound work, or a bit of both. For Borden Ladner Gervais LLP, the focus is on outbound work, which involves working with Canadian companies as they expand into Asian 30 SEPTEMBER 2009 www. C ANADIAN Law ye rmag.com markets, helping with due diligence, briefing them on foreign legal environments, and co- ordinating with local counsel. Martin Donner, the firm's Asia-Pacific practice group leader, says: "There's a perception — and a certain amount of reality behind that perception — that China's investment potential is huge, and its needs are great. For our Canadian clients, they see China as having the most potential, in terms of what they can provide." Martin Cauchon, a former federal Justice minister who is leader of the China group at Gowling Lafleur Henderson LLP, says: "China's middle class is growing at an amazing pace. It's fast becoming a nation of consumers. With a population of 1.2 billion people, we're talking about a huge middle class. There's more and more well-educated people, and a lot of them want a similar lifestyle to us. Canadian clients want access to that market- place." Gowlings has several Mandarin-speaking lawyers who are in China almost on a full-time basis. In June, the firm hired the first PRC law- yer licensed to practise Chinese law in Canada. According to Pitman Potter, a BLG con- sultant and UBC law professor, Canadian cli- ents in China are concerned about issues like contract enforcement, repatriation of profits, the regulatory process, labour issues, and more recently, environmental sustainability, and cor- porate social responsibility. Donner adds: "Our clients want us to get involved. Quite often,