Urumqi legal market evolving as cross-border trade flows

In preparation for the flourishing of cross-border trade, Xinjiang Gonglian, a law firm based in Urumqi, the capital of China's northwest Xinjiang Uygur Autonomous Region, is now busy preparing for a branch office in Bishkek, the capital city of neighbouring Kyrgyzstan. The new office is expected to open in May 2009. Gonglian will be the first PRC law firm established in Kyrgyzstan.

In the past few years, the legal market has been growing rapidly in Urumqi, the most inland city in the world. By the end of 2008, Urumqi had more than 600 lawyers in 57 firms, a dramatic increase compared to the 1980s, when there were only 20 lawyers.

"In recent years, we've seen many opportunities in the legal sector stimulated by the cross-border trade between China and central Asia," said Zhang Jianwu, director of Xinjiang Gonglian. "Moving forward, the potential is huge, with more and more disputes arising in business activities."

In 2008 alone, Xinjiang's total import and export levels hit a historical high, exceeding US$22bn. Regarded as the bridgehead for trade ties with Central Asia, Xinjiang's trade dominates the mid- and west-China regions, and ranks number 11 in trade among all China's provinces.

The autonomous region borders eight countries - Mongolia, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Pakistan and India - and trade ties have been established with more than 100 countries and regions. There are approximately 6,000 trading companies in Xinjiang, most of which are headquartered in Urumqi.

Various governments are committed to boosting this region's economy. For example, China and Kazakhstan have set up an international trade cooperation area, both assigning 14.3squarekm for development and use by joint ventures.

"International companies are starting to show their interest in Xinjiang, and many companies from Japan, Germany, Italy, South Korea and the US hope to use Xinjiang as a springboard for entering central Asia," said Zhang Jianwu. "But for us, as a local inland firm, we'll try to use our geographic and language advantages to shine in the regional market, rather than trying to expand to south or east China where the legal market is more competitive."