If you do business with other companies or entities in China, you may find yourself concerned if an entity winds up owing you money. Taking legal action against a business requires you to transmit documents and engage with the legal system in another country.
When it comes to lawsuits or debt collection in foreign countries, the Hague Convention provides a convenient and efficient means of doing business abroad.
The U.S. and China agreed to the Hague Service Convention
The Hague Convention is a framework in which countries sign an agreement to follow specific rules regarding cross-border litigation. Those who agree to the Hague Convention must enforce all judgments and injunctive orders from other countries. Since both China and the U.S. signed the Hague Convention, this is the framework you would use when filing a lawsuit or claim against another business.
The Hague Service Convention allows for debt collection
In order to collect on a debt, you have to give the other party proper notice. The Hague Convention allows you to access parties within China for arbitration, litigation or other processes. Without the Hague Convention, you may find it more difficult to serve other businesses or entities legal papers when filing a lawsuit or debt collection case.
When it comes to filing a lawsuit or seeking to collect a debt with business partners in China, you must translate English into simplified Chinese. The process is speedier under the Hague Service Convention because you use forms that both countries will recognize.