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What are some tips to avoid litigation in China when doing business?

On Behalf of | Sep 2, 2022 | Blog, Business Litigation

Landing in a Chinese court can be intimidating. The legal system there differs from the American system in many ways. It can be confusing to try to take your case to court in a foreign country.

Your best bet is to avoid problems so that you do not end up in court. The U.S. Department of Commerce explains you need to ensure that everything you do is in inline with Chinese law and protects your interests.


Your contracts need to be clear and specific. You want to outline every detail of the transaction, from delivery to payment. Make sure you specify how and when the other company will pay you. Ensure you also state the currency you expect the payment to be in. Outline expectations and ensure when you translate it that you do not lose any important details.


You will need to review all contracts to make sure they adhere to Chinese law. You should understand that some terms may be fine in one province, but they will not hold up in another. Attention to detail is very important when it comes to the legal aspects of your contract agreement.


It is also essential to only seek out reliable and solid partners to work with in China. Make sure you do your research into the company. Know their financial details and get as much information as you can to make an informed decision about whether doing business with the entity will be beneficial.

You may not be able to avoid all disputes, but making sure your contracts are ironclad can help you avoid many issues and will benefit you if you end up in a Chinese court.