CanSino’s covid-19 vaccine exports
CATEGORIES: Trademark; Licensing; Medicine
LEGAL COUNSEL: Global Law Office acted as CanSino Biologics’ counsel.
KEY POINTS: CanSino vaccine, China’s first approved adenovirus vector-based covid-19 vaccine, has undergone clinical testing and production in several Latin American countries including Mexico, Chile and Argentina. CanSino Biologics is supporting many developing countries in Latin America localising vaccine production through technology transfer.
The export of this vaccine involved creating a co-operation model with various Latin American countries, drafting clinical trial agreements, and establishing product registration and supply arrangements. This process included extensive negotiations with multiple parties including global and local contract research organisations and researchers involved in the clinical trials.
CGN Brazil receives investment
CATEGORIES: Investment; M&A; Energy
LEGAL COUNSEL: Global Law Office acted as the project counsel to CGN Energy International Holdings, while Clifford Chance acted as international law counsel.
KEY POINTS: CGN Energy International has secured the China-LAC Industrial Co-operation Investment Fund as a strategic investor in its Brazilian subsidiary, CGN Brazil, raising RMB3.3 billion (USD455 million) through capital increases and share expansions.
CGN Brazil is a vital clean energy platform in South America, and the two parties plan to leverage this project as a foundation for further collaboration in countries along the Belt and Road Initiative.
Established in 2015, the China-LAC Industrial Co-operation Investment Fund is a government-backed investment fund focused on the Latin American region. With an initial capital of USD30 billion, the fund aims to foster partnerships between China’s leading industries and Latin American nations.
CGNP’s Brazilian solar project
CATEGORIES: Project; Energy
LEGAL COUNSEL: IW Melcheds acted for Energybras.
KEY POINTS: CGN Brazil, a subsidiary of China General Nuclear Power Group, is developing the Lagoinha Solar Complex in Ceará, marking the group’s first greenfield solar park in Latin America.
The project involves the acquisition of a 170MW solar complex from the renewable energy company, Energybras.
Once operational, the Lagoinha project is expected to generate 400 million kWh of electricity annually and reduce carbon dioxide emissions by 300,000 tonnes per year. This initiative underscores the positive impact that Chinese companies can have in advancing Brazil’s energy transition.
Chinatex sues Cotrijui for liquidation
CATEGORIES: Bankruptcy and liquidation; Dispute resolution
LEGAL COUNSEL: Souto Correa represented Chinatex, while Brizola e Japur acted as trustee.
KEY POINTS: After a decade of legal battles, Cotrijui, once the largest agricultural co-operative in Latin America, was ordered by a Brazilian court last year to enter judicial liquidation to settle more than BRL3 billion (USD505 million) in debts, including USD12 million owed to Chinatex.
Cotrijui’s financial troubles began in 2013, when it defaulted on soybean deliveries to Chinatex and failed to repay an advance payment. This situation led Chinatex to repeatedly petition a Brazilian court to seize Cotrijui’s assets.
In an attempt to avoid formal bankruptcy proceedings, Cotrijui sought out-of-court liquidation, resulting in Chinatex filing a lawsuit. The legal landscape shifted in 2019, culminating in the court’s final confirmation of Cotrijui’s judicial liquidation in 2023.
The case garnered significant media attention in Brazil, with Chinatex ultimately safeguarding creditor rights through various litigation efforts, independently and in collaboration with other creditors.
CNOOC ups Buzios oilfield stake
CATEGORIES: Investment; M&A; Petrochemicals
LEGAL COUNSEL: Tauil & Chequer and Mayer Brown advised China National Offshore Oil Corporation (CNOOC).
KEY POINTS: CNOOC has acquired a 5% stake in the Buzios oilfield, the world’s largest deepwater pre-salt oil producer, from Brazilian state-run oil firm Petrobras for BRL10.3 billion (USD1.73 billion). CNOOC became the largest partner of the oilfield’s operator, Petrobras, after the deal.
In 2019, CNOOC secured a 5% interest in the Buzios field, so with this latest purchase its total stake now stands at 10%. According to CNOOC’s 2022 figures, the Buzios oilfield produced 600,000 barrels of oil per day, making it one of the key drivers of growth for CNOOC’s overseas oil and gas production.
Foton Motor’s distributor dispute
CATEGORIES: Dispute resolution
LEGAL COUNSEL: Souto Correa represented Beiqi Foton Motor do Brasil and Foton Motor do Brasil Vendas. Mattos Filho represented Foton Aumark do Brasil (FAB).
KEY POINTS: In August 2023, a Brazilian court ruled in favour of Foton Motor in a contractual dispute with its Brazilian operational partner, FAB, regarding jurisdiction. This decision is a reference point for Chinese companies facing similar legal challenges.
In 2010, Foton Motor and FAB entered into several contracts allowing FAB to sell specific types of Foton vehicles in Brazil. While one contract lacked a dispute resolution clause, the others included arbitration provisions. In 2022, FAB’s judicial restructuring led to repeated delays in vehicle deliveries to Brazilian dealers, prompting Foton Motor to terminate its agreement with FAB and directly distribute vehicles to the dealers.
Subsequently, FAB sued Foton Motor for business “usurpation”, seeking compensation for BRL600 million (USD101 million). Foton Motor contended that the court lacked jurisdiction and raised various procedural and substantive defences. Ultimately, the Brazilian court recognised the validity of Foton’s defences and conferred exclusive jurisdiction to the arbitral tribunal, leading to the termination of the proceedings.
Longsys buys Smart Brazil stake
CATEGORIES: M&A; Semiconductors
LEGAL COUNSEL: Pinheiro Neto advised the buyer on Brazilian law, Zhong Lun Law Firm advised on PRC law, and Sidley Austin provided other international law advice. Latham & Watkins acted for the seller.
KEY POINTS: A-share listed company and memory manufacturer Longsys acquired an 81% stake in Smart Brazil for USD16.8 billion. While Chinese companies typically expand into the energy and infrastructure sectors, it is relatively rare for semiconductor storage firms to enter the Latin American market.
Smart Brazil was a leading manufacturer of memory chip packaging, testing and memory products in Brazil, boasting a well-established production base in the country. This acquisition has significantly enhanced Longsys’ overseas supply chain capabilities. The transaction involves multiple jurisdictions including China, the US, Brazil, South Korea and the Netherlands, resulting in a complex and lengthy legal process.
The target company was renamed Zilia Technologies after the merger.
Risen Energy and Focus Futura settle
CATEGORIES: Dispute resolution
LEGAL COUNSEL: Commerce & Finance Law Offices and Sidley Austin represented Risen Energy. Quinn Emanuel and Demarest represented Focus Futura.
KEY POINTS: China’s solar module manufacturer, Risen Energy, and Brazilian company Focus Futura entered arbitration proceedings at the ICC International Court of Arbitration in February 2023 over a contractual dispute. The two parties have now reached a comprehensive settlement.
In 2020, Focus Futura agreed to purchase 870 megawatts of photovoltaic modules from Risen Energy. However, a surge in global silicon prices led Risen Energy to seek a price renegotiation. Focus Futura then applied for arbitration and received a favourable ruling. Risen Energy later attempted to overturn this award in the US District Court for the Southern District of New York, but the court denied the request.
While the arbitration court supported Focus Futura, it ruled against claims that Risen had renegotiated in bad faith, stating that tough negotiation does not equate to bad faith and does not invalidate the contract’s limitation of liability clause.
