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China Matters: Effective Techniques to Resolve Disputes with Chinese Companies

January 05, 2006

By Paul Hastings Professional

As with any significant investment, foreign investors doing business in China should conduct extensive due diligence on potential local partners before signing a commercial agreement. But if a dispute arises, for example over a failure by the Chinese party to make payments or deliver services, investors will need to use appropriate legal action. By drafting and inserting arbitration clauses in the initial contract, foreign parties greatly improve the prospects of having an effective means of enforcing their rights, and of doing so in a confidential and flexible way.