Drafting a solid contract with a Chinese company is the first step to successfully suing it. When using a Chinese company, the first thing you should do is to carefully draft the suit papers with an experienced China business lawyer.

Angry businessman talking to his crying female assistant

Drafting a solid contract with a Chinese company is the first step to successfully suing it. When using a Chinese company, the first thing you should do is to carefully draft the suit papers with an experienced China business lawyer.

Business disputes between a Chinese company and a foreign firm are quite common. Knowing the process of how to use a Chinese company should be your first priority. If you don’t have the knowledge, it is a good idea to hire a China business lawyer with extensive knowledge of dealing with China litigation cases.

 

When it comes to suing a Chinese company in Mainland China, the US and the European firms face no jurisdictional restriction. Articles 3 and 237 of the PRC’s Civil Procedure Law grant the Chinese court’s jurisdiction over international cases involving foreign plaintiffs against Chinese companies.

 

There 3 things you must know about using a Chinese company

 

1- Where to sue?

Jurisdiction will usually be the first issue you will need to resolve in figuring out your litigation strategy against a Chinese company. Before attempting to sue a Chinese company, make sure that you qualify to use the Chinese court system. Review your case and compare it to the guidelines that a local Chinese court offers. If you are unsure, consult with an attorney.

 

2- Sue in what language?

Your English document must be translated into Chinese first by the authorized party. Some Chinese courts don’t enforce English language contracts at all. It is extremely important that you preserve all records that have any relationship to the case.

 

3- Determine the claims

Determine what claims you have and what type of damages you are interested in. Damages can take many forms, such as monetary compensation or a replacement product. This may seem obvious, but you need to have a genuine legal claim or “cause of action” in order to have a court support your position.

 

Drafting a solid contract with a Chinese company is the first step to successfully suing it. It is essential to set what will happen under which conditions. The US and the European firms will often have a standard contract, which is unlikely to be optimal when engaging in business with Chinese companies. Make sure your China attorneys really understand the case. And they need to work closely with you to ensure you understand the Chinese legal system and its nuances and processes.

 

You need to draft your suit papers in the right way. If the information in suit papers is incorrect in any way, China company may move to dismiss the action in its entirety. When using a Chinese company, the first thing you should do is to carefully draft the suit papers with an experienced China business lawyer.

Share with friends:

Compliance Culture and Employment Law of China

Employment Contract Conflicts With the New AZ Employee Rights

Due to the ‘first to file system, the outcome of any trademark dispute primarily hinges on who registered it first in China. The China National Intellectual Property Administration (CNIPA) performs an ex officio examination of the existence of identical and/or similar earlier rights to the one intended to be protected as a trademark.

 

It means that the existence of identical or similar earlier rights can prevent the registration of a trademark filed at a later stage and that the filing must be done as soon as possible. So, if you are planning to do business in China, it is important to register your trademark first.

 

Overseas companies willing to invest in China need to understand the requirements of the Chinese government first. Chinese authorities want several things from foreign enterprises that are willing to sell to the Chinese population. Here is a rundown of their requirements-

 

  • The Chinese government wants that foreign companies must open factories to employ and give preference in employing Chinese workers.
  • Foreign companies must share their technology and forcing foreign firms to hand over their technological secrets as the price of entry to the massive Chinese market.
  • Foreign firms must strictly adhere to the China employment law and do business over here in a Chinese way.

 

Importance of Cultivating a Strong Compliance Culture in China

Cultivating a robust compliance culture and a strong compliance tone from the top is paramount. Your most important first step to preventing China’s corruption compliance problems is to establish a strong anti-corruption policy that addresses both China’s anti-corruption laws and those of your home country. Under Chinese President Xi Jing Ping’s anti-corruption campaign, the enforcement has expanded to focus not only on governmental officials but also on the business communities. Now Chinese procurators and judges now put more weight on penalizing the crime of bribery.

 

Always remember to get the Chinese documents verified by your Chinese lawyer because there is a difference between the English and the Chinese versions. Moreover, the English version does not hold true in the Chinese court, and hence getting it documented in Chinese is absolutely necessary. Also, they will require more time to prepare a contract that can protect both the parties and particularly the foreign party from ending up in a soup.

 

Share with friends: