Page 23 - The South China Business Journal
P. 23
inowitz and formed the predecessor to our present firm. We also started communications with organizations
in mainland China, so as to try to arrange a visit, since travel to China was fundamental.
The first day of the Canton fair beginning on 15th April 1972 was a very dramatic moment in my life. The Canton
fair at that time was held in Haizhu Square in Guangzhou. My first appointment was in a building having a
huge rotunda which was basically empty except, quite a distance from the entrance, a group of persons who
looked like government officials, together with some persons with cameras who appeared to be reporters, were
talking to each other. I stood by the entrance door, not knowing what to do. One of the persons of the group
approached me and asked in Chinese, “Are you David Buxbaum?”. I replied “Yes”, and cameramen snapped
photos of our shaking hands. He said: “China and America trade has just begun.”
Prior to my arrival in Guangzhou in 1972, I became famous in the USA for a while, as the first person to receive
an invitation to the 1972 Spring Canton Fair, after the President Nixon earthshaking visit to China in February
and March 1972. At that time, lawyers were not well-regarded in China. Therefore, we used a commercial
company to apply for an invitation to the Canton Fair. Since this was the first public invitation to an American
firm since 1st October 1949, it made news throughout the world, especially in America. For some time after
this invitation I was invited to appear on many TV programs, was regularly interviewed by reporters and was
temporally an alleged expert on all things Chinese, including spring rolls.
At the Spring Canton Fair in 1972, we were able to assist many American companies in their contract
negotiations with Chinese State Own Enterprises (“SOEs”), mostly trading companies. One problem that
persisted for some years was the fact that assets in the USA of Chinese persons were frozen; and assets in China
of Americans were also frozen. Therefore, third country banks had to be employed to finance the transaction. In
the early 70s, there were two Canton Fairs per year in spring and autumn, each for a 6 weeks period. However,
business people came to Guangzhou long before the fair started; and many stayed long after the fair ended.
We continued to provide legal services, primarily but not exclusively to American companies. During this period
of the Cultural Revolution, which lasted until 1976, there were no courts or arbitration tribunals in China. The
law departments and law schools were closed. There were no law firms and many people trained in law were
sent to the countryside. When there was a contract dispute or other legal dispute, since at that time virtually
all contracts involving foreign parties, were entered into with China SOEs, the higher level SOE would mediate
disputes involving their low level companies and the foreign party. For example, if the contract entered into was
with a Guangzhou level SOE, the Guangdong level SOE would mediate the dispute.
Thereafter, I primarily spent time between the US and
China, and later Mongolia, providing legal services.
Because commodities was a very important part of US-
China trade, and Chinese trade with the rest of the world,
our firm was very active in commodities law practice
in China and the US, including drafting and negotiating
contracts, registering commodity traders and exchanges,
and litigating and arbitrating commodities disputes. We
represented American corporations in major negotiations
with Chinese companies for transactions involving sale of
American cotton to China; and purchase of Chinese greige
goods by American companies. When the Commodities
Futures Trading Commission (“CFTC”) was established in
the US, our firm was very active advising commodities
brokers and helping to arbitrate their disputes. Even
prior to that, we represented the American Board of
Trade, a spot commodities exchange, which had been
wrongfully sanctioned by the division of the Department
of Agriculture, regulating commodities trading.
A Report from Xin Evening News in 1989 As a result of this representation, I successfully prepared
and argued a major case before the US Supreme Court
involving the immunity of the Ministers of the Sovereign
(Butz, Secretary of Agriculture) to suit, that was decided
in 1978; Butz et al. v. Economou et al.438US478(1978).
The result of this five to four decision was the narrowing
of sovereign immunity, permitting suit by persons
wrongfully damaged by federal officials, acting within
the scope of their authority, committing what has been
termed, “Constitutional torts”. These officials are liable for
damages resulting from their wrongful acts. This case has
been cited in 5000 cases since 1978.
SOUTH CHINA BUSINESS JOURNAL 20
in mainland China, so as to try to arrange a visit, since travel to China was fundamental.
The first day of the Canton fair beginning on 15th April 1972 was a very dramatic moment in my life. The Canton
fair at that time was held in Haizhu Square in Guangzhou. My first appointment was in a building having a
huge rotunda which was basically empty except, quite a distance from the entrance, a group of persons who
looked like government officials, together with some persons with cameras who appeared to be reporters, were
talking to each other. I stood by the entrance door, not knowing what to do. One of the persons of the group
approached me and asked in Chinese, “Are you David Buxbaum?”. I replied “Yes”, and cameramen snapped
photos of our shaking hands. He said: “China and America trade has just begun.”
Prior to my arrival in Guangzhou in 1972, I became famous in the USA for a while, as the first person to receive
an invitation to the 1972 Spring Canton Fair, after the President Nixon earthshaking visit to China in February
and March 1972. At that time, lawyers were not well-regarded in China. Therefore, we used a commercial
company to apply for an invitation to the Canton Fair. Since this was the first public invitation to an American
firm since 1st October 1949, it made news throughout the world, especially in America. For some time after
this invitation I was invited to appear on many TV programs, was regularly interviewed by reporters and was
temporally an alleged expert on all things Chinese, including spring rolls.
At the Spring Canton Fair in 1972, we were able to assist many American companies in their contract
negotiations with Chinese State Own Enterprises (“SOEs”), mostly trading companies. One problem that
persisted for some years was the fact that assets in the USA of Chinese persons were frozen; and assets in China
of Americans were also frozen. Therefore, third country banks had to be employed to finance the transaction. In
the early 70s, there were two Canton Fairs per year in spring and autumn, each for a 6 weeks period. However,
business people came to Guangzhou long before the fair started; and many stayed long after the fair ended.
We continued to provide legal services, primarily but not exclusively to American companies. During this period
of the Cultural Revolution, which lasted until 1976, there were no courts or arbitration tribunals in China. The
law departments and law schools were closed. There were no law firms and many people trained in law were
sent to the countryside. When there was a contract dispute or other legal dispute, since at that time virtually
all contracts involving foreign parties, were entered into with China SOEs, the higher level SOE would mediate
disputes involving their low level companies and the foreign party. For example, if the contract entered into was
with a Guangzhou level SOE, the Guangdong level SOE would mediate the dispute.
Thereafter, I primarily spent time between the US and
China, and later Mongolia, providing legal services.
Because commodities was a very important part of US-
China trade, and Chinese trade with the rest of the world,
our firm was very active in commodities law practice
in China and the US, including drafting and negotiating
contracts, registering commodity traders and exchanges,
and litigating and arbitrating commodities disputes. We
represented American corporations in major negotiations
with Chinese companies for transactions involving sale of
American cotton to China; and purchase of Chinese greige
goods by American companies. When the Commodities
Futures Trading Commission (“CFTC”) was established in
the US, our firm was very active advising commodities
brokers and helping to arbitrate their disputes. Even
prior to that, we represented the American Board of
Trade, a spot commodities exchange, which had been
wrongfully sanctioned by the division of the Department
of Agriculture, regulating commodities trading.
A Report from Xin Evening News in 1989 As a result of this representation, I successfully prepared
and argued a major case before the US Supreme Court
involving the immunity of the Ministers of the Sovereign
(Butz, Secretary of Agriculture) to suit, that was decided
in 1978; Butz et al. v. Economou et al.438US478(1978).
The result of this five to four decision was the narrowing
of sovereign immunity, permitting suit by persons
wrongfully damaged by federal officials, acting within
the scope of their authority, committing what has been
termed, “Constitutional torts”. These officials are liable for
damages resulting from their wrongful acts. This case has
been cited in 5000 cases since 1978.
SOUTH CHINA BUSINESS JOURNAL 20
