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III. Problems in Cooperation

business acceptance, service charges of the law firms, sharing of responsibilities and supervision, etc.

(a) Regulatory constraints and inadequate support facilities hinder the development of
non-partnership associations

With regards to entry requirements, there are differences in the criteria for recognising practising lawyers. It

is generally accepted that partners or principals of non-partnership associations must be practising lawyers of the
firms. The recognition of Mainland practising lawyers is relatively simple and easy to implement. However, the

recognition of practicing lawyers in Hong Kong and Macao requires a combination with Hong Kong standards.

(b) Conflicts of interest are handled differently by lawyers

Lawyers may provide services to clients in Hong Kong and the Mainland at the same time, which may

lead to potential conflicts of interest for clients. The Law Society of Hong Kong and the Hong Kong Bar
Association have published relevant codes of conduct and guidelines requiring lawyers to maintain a high level

of professional ethics when dealing with conflicts of clients’ interests. There are also corresponding provisions
in the “Lawyers Law of the People’s Republic of China”. Precautions should be taken to ensure a balanced

consideration of the interests of different clients in accordance with law and ethical principles.

(c) Differences in the scope of business acceptance and processing standards

Survey data reveals that Mainland enterprises believe that Hong Kong law firms apply different industry

standards when handling particular types of businesses. Specifically, in relation to intellectual property and
client data security, it is crucial to ensure confidentiality and security of the legal services. However, the level of

protection varies between the two regions, which can easily lead to business disputes. For example, compared
with Hong Kong, regulation of cross-border data in the Mainland is stricter and tighter. Their Cybersecurity

Law, Data Security Law, and Personal Information Protection Law all impose requirements on cross-border
data/ information transfer. This involves not only the interests of individuals but also national security, digital

sovereignty, and the protection of public interests. Therefore, cross-border data transfer in the Mainland needs
to satisfy a series of requirements including individual consent, passing of security assessment, and protection

certification by professional institutions. On the other hand, there is no similar cross-border data transfer
restrictions in Hong Kong, and the provisions on exemptions are more refined. To a certain extent, the Mainland’s

restrictions on cross-border data transfer have hindered judicial proceedings or investigations conducted by the
Securities and Futures Commission in Hong Kong.

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