Dacheng Provides Global Activity Chain Compliance Management Services for an Energy Technology Company

Recently, a well-known Chinese energy technology joint-stock company engaged the Dacheng compliance project team to provide it with special global activity chain compliance management services and special global activity chain compliance management services, including ESG compliance management system development, supply chain compliance management, economic sanctions and export control, centering on cross-border sales of its products and services as well as cross-border investment and construction of its factories, to provide it with special global activity chain compliance management services, including ESG compliance management system development, supply chain compliance management, economic sanctions and export control.

As a professional provider of lithium-ion battery systems, Dacheng Energy Technology Co., Ltd. focuses on the research and development, production and sales of new energy vehicle batteries and energy storage battery systems. Dacheng Energy Technology Co., Ltd. also provides total solutions for batteries and energy storage products according to customers' needs. In addition to its products "going global" to provide relevant products and services worldwide, the enterprise is also "going global" to build production bases overseas, thus triggering the demand for global activity chain compliance management services.

Chain of activities is a concept used in the upcoming Due Diligence Directive on Sustainable Development of Enterprises ("Directive") by the European Union, which adopts the expression of "chain of activities" as a compromise compared with the broader "value chain" and the narrower "industry chain". Under the "chain of activities," a company's responsibility is not limited to its own internal management, but also covers its subsidiaries and business partners upstream and downstream of the chain of activities, including production, supply, transportation and storage, design, and distribution, and their impact on people and the planet. As for Chinese companies "going global", if they have already established a significant EU presence, they are likely to be included in the final list of non-EU companies and be subject to the Business Sustainability Due Diligence Directive and other relevant legislation introduced by EU Member States pursuant to the requirements of the Directive. Such enterprises will be fined and civilly liable under the Directive if they fail to exercise due diligence in relation to the relevant parties in breach of the Directive and the relevant legislation of Member States. Moreover, individual liabilities of managers may also be pursued in Member States having jurisdiction pursuant to their relevant domestic laws. Before the Directive enters into force, companies also need to pay attention to the relevant laws that are already in force, such as the Supply Chain Due Diligence Act (Germany), which has been enacted and is being implemented.

For Chinese enterprises that do not "go global", even if they are not directly governed by the Directive and the subsequent relevant legislation of the EU Member States, they may, as a due diligence party in the chain of activities, have to accept relevant due diligence on "environmental protection" and so-called "human rights", otherwise, they will be excluded from the chain of activities of customers, and thus suffer significant risk of business loss. Therefore, compliance in the entire activity chain brings both opportunities and challenges to Chinese companies. The specialized compliance services provided by Dacheng lawyers reflect that Chinese companies are attaching more and more importance to deal with compliance risks through a system of compliance management, and that Dacheng lawyers are constantly keeping pace with the times in compliance management and creating value for companies through compliance.

Dacheng Team acts as special legal counsel for global activity chain compliance management of the Project, providing professional, comprehensive, timely, high-quality and efficient legal services. Led by Ms. Chen Litong, a senior partner in Dacheng's Shanghai office, the team forms a compliance team. With the help of lawyers from other offices of Dacheng in China, Dacheng's Shanghai, Shenzhen, Changzhou, Chengdu and Xi 'an, the team forms a major compliance team to serve companies. The key responsible persons of the compliance teams in each region are Chen Litong and Si Junyan from the office in Shanghai, Xie Yeman from the office in Shenzhen, Dai Xuchu and Xu Jiao from the office in Changzhou, Lei Li and Cao Jing from the office in Chengdu, and Liu Xiaoyan and Wang Yaqiong from the office in Xi 'an.

The Person in Charge, Ms. Chen Litong, is a senior partner of Dacheng Shanghai Office, a member of National Technical Committee on Standardization of Institutional Governance and an expert for ISO/TC 309/AHG 6 ESG and the Climate Change Coordination Working Group. He is also listed in the National List of a Thousand Foreign-related Lawyers (hereinafter referred to as Chambers, The Legal 500 and LEGALBAND) and will win the Award of Outstanding Contributions to it in 2023.