Strategic Contracting in China for Foreign Firms
Thunderbird International Business Review, Vol. 57, No. 3, pp. 241-254
21 Pages Posted: 14 Sep 2020 Last revised: 16 Sep 2020
Date Written: 2015
There is serious debate within the global business community regarding the value of the Chinese court system and written business contracts in China. One side asserts the validity of such contracts and that Chinese courts are good at enforcing them. The other side argues the contrary. Using data from several sources, we demonstrate that the legal system and well-written contracts do, in fact, matter in China. This article also recommends how contracts can be structured and strategically used to make doing business in China and with Chinese firms more predictable and efficient.
Keywords: China, Strategic Contracting, Contracts, Commercial Disputes, Litigation, Enforcement of Judgments, Company Seal or 'Chop'
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