An Indian lawyer, living in Beijing since the past two years, Nitin Sen has a keen, practical  understanding of both India, and China - the economic, social and political changes surging through the nations as well as the unique complimentary relationship the countries share.  2point6billion, discusses Asia and its combined potential, the legal systems and the road ahead with this multi talented lawyer.

2point6billion.com: Are there any aspects of the Chinese legal system which will help it ride the financial tsunami? / grow?

Mr. Sen: The strict regime on RMB convertibility and exchange rate as well as restrictions on investing abroad have ensured that China has remained relatively unaffected. We can be sure that the policy makers will fine tune the regulatory system to ensure that China remains protected from exposure to the financial tsunami.

2point6billion.com: How do you anticipate the slowdown in the world markets to affect the Asian growth story? What is the impact of the global recession on Asia?

Mr. Sen: The impact would depend on the Asian economy’s exposure to the affected (western) markets. For example, India’s middle class is a formidable consuming entity in itself and we are not as much an export-driven economy as, say, China. In the financial sector also, Indian banks have reported a comparatively less exposure to ‘toxic debt’ than their counterparts in other parts of the world.

2point6billion.com: In legal matters, how do you compare the judiciary system in China with that of India?

Mr. Sen: The two are completely different in their jurisprudence, history, hierarchy and procedure. For example, China follows the civil-law system and India follows common-law. In the latter, court decisions of higher courts (precedents) are as binding as the concerned legislation. Under civil law, court decisions cannot be cited in support of your case. However, it may be mentioned that due to multilateral treaties like the WTO agreement, member countries are supposed to have similar provisions and standard of law in various key sectors. This is where laws of all countries tend to converge.

2point6billion.com: Do you feel that India and China will work together for the common growth of Asia or will the two countries continue to grow individually at their own pace?

Mr. Sen: The two countries are already working together. The bilateral trade is hovering around US$ 50 billion per annum with a growth rate of 48 percent year on year (the highest experienced by either country). China is already India’s second-largest trading partner and India is, in turn, in the top ten list of China. With India committing US$ 1 trillion over the next 10 years for the development of infrastructure which is China’s strength, it is a good opportunity for Chinese companies to capitalize on this opportunity. India too can profit from big opportunities in China in such sectors as IT and pharma.

2point6billion.com: What is the reason behind why many Chinese companies are still apprehensive to enter the Indian market?

Mr. Sen: Corporate citizens of both countries may be apprehensive of each other because of a simple reason- the trade engagement between India and China is a recent phenomenon. Therefore, there is not much experience to draw from. Nonetheless, trade and people to people contact is growing at a phenomenal rate every year. In the final analysis, since business opportunities are so lucrative and massive, entrepreneurs are sure to get over the learning curve in order to cash in on the same.

2point6billion.com: What are the cultural differences you see between China and India?

Mr. Sen: Cultural differences are good for a coffee table talk but are overrated. A modern economy works on well-defined principles and the rule of law. As an entrepreneur, it would not be acceptable to me that a project is scuttled-at whatever stage-only on the basis of some cultural difference. I would need to know a tangible, legal reason for such failure. Plus, as mentioned, multilateral treaties impose a common standard on member nations-regardless of their cultural persuasions- so that similar benefits are availed of in every jurisdiction.

As for cultural sensibilities, politeness and genuine respect for the other person obviates any cultural differences and helps people get on with the real job of doing business.

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