On April 22, 2026, Shi Zhiqun, partner at M&T Lawyers, was invited by Peking University's School of Innovation and Entrepreneurship to deliver a talk on "Government Affairs Management and Administrative Dispute Resolution." Drawing on real cases, Shi systematically outlined the full spectrum of government engagement for businesses—from routine administrative coordination and regional strategic alignment to dispute resolution pathways and crisis remedies—helping entrepreneurs balance compliance with risk response and build robust government-enterprise relationships.
Government Affairs: From Passive Response to Proactive Management Shi noted that startups should establish clear compliance baselines from the outset, focusing on market access, fiscal and tax compliance, and employment matters, while setting up routine government communication mechanisms—designating dedicated liaisons, regular reporting, joining industry associations, and participating in official events—shifting from "crisis-driven" to "relationship-maintenance" mode.
Policy Shifts: Fiscal Incentive Models Under Challenge
Traditional "fiscal incentive" policies are undergoing adjustments, with rising risks from oral commitments. Shi advised businesses to focus on core competitiveness, pursue nationally available general-benefit policies,formalize government promises in writing or contracts, and seek professional legal review when necessary.
Regional Selection: Align with Development Stage
Site-selection strategies differ by growth phase: startups prioritize cost and policy support; growth-stage companies focus on industrial clusters and market reach; mature firms value branding and global exposure. Regions like the Greater Bay Area, Yangtze River Delta, and Chengdu-Chongqing each have distinct pros and cons, requiring comprehensive assessment.
Daily Engagement: Professionalism, Candor, and Documentation
Interactions should be professional, candid, respectful, and timely, with key matters documented in writing. When facing inspections, maintain proper records, provide truthful accounts, and implement corrective measures within deadlines.
Administrative Disputes: Reconsideration and Litigation
For disputes, administrative reconsideration is the preferred first step;if unsatisfied, administrative litigation may follow. For unfulfilled fiscal incentives, a progressive approach—negotiation, reconsideration,litigation—is recommended, with written evidence being critical. Tax audits and "profit-driven enforcement" must also be addressed lawfully.
Compliance Risk Control: Fortify the Frontline
Businesses face legal risks across tax, environmental, and market regulation. Shi proposed a four-step compliance framework: system building,process integration, employee training, and supervisory accountability—toblock risks at the source.
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