Dispute Resolution in China
Dispute Resolution in ChinaUpdated on Tuesday 19th April 2016
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While doing business in China, individuals and foreign companies can find themselves in certain disputes with other Chinese legal entities or even with Chinese authorities. Commercial disputes can be avoided through good commercial practices but foreign investors who want to protect themselves from any unwanted events can request the services of a law firm in China.
Dispute avoidance while doing business in the country starts with good contractual terms, regardless of the type of business or legal entity with which you enter a business agreement. Company due diligence as well as legal assistance when entering into any types of agreements is also helpful for avoiding litigation in China.
Causes for commercial disputes in China
Commercial disputes in China can arise from a misunderstanding of the contractual terms, bad payments and entering into a business relationship with a partner that is not chosen carefully. China has taken important steps for improving its investment environment and foreign business owners in the country are seeing a more open attitude towards solving commercial disputes and improved laws to guarantee their ownership rights in the country.
Restrictions on foreign direct investments have been loosened or removed altogether in certain areas. This improved business environment allows investors to have more rights and the number of commercial litigation cases has risen over the years. In order to avoid taking legal action while doing business in the country, investors can and should take certain protective measures:
- state clear contractual terms;
- company due diligence and property due diligence;
- avoiding insolvent customers and business partners;
- risk analysis and a good business strategy.
Our lawyers in China can help you with legal services and assistance.
Solutions for dispute resolution in China
Business or commercial disputes in China are commonly solved through litigation. The Chinese court system is made up of basic level courts and high level courts. Small claims and minor disputes are solved at a basic level. However, regardless of the prejudice and its amount, you should also see legal assistance for litigation and court representation in China.
Our law firm in China can help you file a claim if you encounter any misunderstandings with another party in China. We can also help you with the enforcement of foreign judgments in particular cases.
Other simpler dispute resolution methods in China include negotiation, arbitration and mediation. Negotiation is usually the first method used in any dispute, even if it is settled in court or through other methods. Mediation and arbitration are preferred for simpler cases and are usually faster than court litigation.
If you need any kind of assistance for dispute resolution in the country you can contact our law firm in China.