Beijing, China -- (SBWire) -- 08/17/2009 -- When asked, most people would identify leading red circle law firm Lehman, Lee & Xu with the fields of Intellectual Property, Mergers and Acquisitions or Private Equity. The firm however also has a thriving diplomatic and government relations practice group. “Most people think that missions have diplomatic immunity and have no interaction with local law. This is simply not the case”, relays Andrew Lillis, part of the firm’s diplomatic practice group.

The firm, one of the longest established in China, prides itself in providing advice to a number of diplomatic missions in China. “Many embassies have issues with labor law”, relays Lillis. “The natural course for most embassies is to hire local Chinese staff for administrative positions to keep costs down and assist with communication”. Under a long standing policy however embassies could not hire staff directly, rather they needed to use a human resources organization called the Diplomatic Service Bureau (DSB). “Many embassies run into problems regarding the specific nature of the relationship between DSB, the diplomatic mission, organization and employee”.

Another issue where missions need help is real estate. “It’s a little known fact but virtually all embassies and diplomatic compounds are leased. There are only a handful, such as the Polish embassy which are owned outright by their occupants.” Notes Edward Lehman, the firm’s Managing Director. “The practical effect of this is that that most missions need to deal with real estate issues. The laws, regulations and policies are often confusing, making the assistance of a law firm with significant knowledge in the area invaluable.”

The role of local lawyers however is not limited to real estate and labor issues. “Occasionally are help is sought regarding broader economic relations. One case recently dealt with a global mining deal and the relations between governments. We’re always help out, no matter how small or large the matter is”, relays Lehman.

It would be difficult for a law firm to provide representation to diplomatic missions without also offering advice on matters related to Chinese criminal law. “We were quite busy during the Olympic Games”, relays Lillis. “Prior to the games we provided seminars on Chinese criminal law to delegations of athletes and embassy personnel and were then on call during the Olympic and Paralympic Games in case any issues arose”.

Inevitably a number of foreigners found themselves in trouble with the law and while many were briefly detained for minor matters, others found that their stay in China ended up being longer than expected. “We had a number of clients who were sentenced to lengthy jail terms for crimes committed during the Games” notes Lillis. “In several of these instances those incarcerated would have faced a fine in their home country rather than a lengthy jail term. Situations such as this illustrate how important it is to be aware of local laws and regulations when in a foreign country.”