Today, China is considered the world’s factory floor. This country is one of the biggest suppliers as well as one of the largest customers. Businesses from all across the globe set up their manufacturing unit or share some sort of business relationship with the Chinese companies.
This enormous amount of business activities also come with many cons. Foreign companies getting entangled with a long legal battle with a Chinese company is quite common in China. Western companies got involved in a litigation battle with their Chinese counterpart. But you need to know that suing a Chinese company is a long and hard process. Patience, economic strength and proper legal assistance are the crucial factors for winning this battle.
A huge number of Western businesses act rather late while taking a Chinese company to the court. They seek legal assistance from the professional China lawyers after having spent 4-6 months trying to reach a settlement with their Chinese counter-part and then given up. We suggest you to opt for an early legal help the moment you have witnessed any sort of discrepancy from the China company. Your legal success depends on how fast you have acted against the China company.
Know the Jurisdiction–
Jurisdiction will usually be the first issue you will need to resolve in formulating your litigation strategy against a Chinese company. Articles 3 and 237 of the Civil Procedure Law of the People’s Republic of China grant Chinese courts jurisdiction over international cases involving a foreign plaintiff against a Chinese company.
The Chinese Litigation System is Inquisitorial, Rather Than Adversarial–
In China, Judges take the lead role in determining what facts and information are necessary for decision, and in uncovering evidence. Each party is responsible for proving its own case, The Court, when it deems it to be necessary, may order production of evidence beyond what the parties have submitted.
The US and Western business owners need to keep in mind that it is only Chinese citizens working in a Chinese law firm are able to plead your case in the court. So, it is important to have a China lawyer who has a good deal of experience and legal knowledge.