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Considerations before you sign a contract with a Chinese company

On Behalf of | Jul 17, 2023 | Blog, Business Law

Forming an alliance with a Chinese company can bring great value to your business. However, there are things you should know prior to signing a contract that will help you avoid missteps that others may view as distasteful.

With the right resources and careful planning, you can create a sustainable contract that mutually benefits all parties involved.

Involve a translator

Given the weight of a contractual agreement, you will want to make sure everyone accurately understands the arrangement. A well-written contract will involve the input of your legal team, as well as an experienced translator who can verify the context matches between languages. Though not always required, LinkedIn suggests including a Chinese version of the contract. Verify which version of the contract, English or Chinese, will take precedence.

Keep wording generalized

Strong wording or content with language-specific meaning may lose value when your Chinese counterparts read it. Because professionals from more than one culture will reference the agreement, keep the wording generalized and simple. Additionally, generalized wording is often easier to translate than more flowery language.

Favor concise content

Contracts in other parts of the world are usually not as lengthy and in-depth as those in Western society. Including too many details might cause a negative reaction. Favor concise content and find ways to disclose your expectations in as few words as possible without losing context.

International business contracts can elevate your company’s reputation and competitiveness. Your diligence in learning how to make your agreement more applicable to Chinese culture can make a difference in how successful the contract is.