How to Execute a Chinese Contract So It Will Work

A China-centric written contract is an effective tool for doing businesses in or with China, explains Steve Dickinson of Harris Moure in an article published on the China Law Blog.

“A first step in creating this effective tool is to carefully follow the rules for execution,” the explains. “Chinese courts are bureaucratic and formalistic. Make use of that tendency so that you can prevail. Don’t blunt the edge of your instrument with sloppy execution procedures. A casual approach to execution is neither appropriate nor effective for China. A failure to follow China contract law formalities can lead to a Chinese court not enforcing your contract.”

“Chinese courts are hyper-technical when working with written documents. If there is any surface flaw, a party will object to the authenticity of the document and then force the party offering the document to prove its authenticity,” he writes in the article.

Read the article.

 




China’s Banks Test U.S. Legal System

As China’s big banks expand in the U.S., they are testing how far U.S. judges can go in demanding account records located in China, The Wall Street Journal reports.

“In a closely watched case, Kering SA’s Gucci and its other luxury brands allege that some of their most troublesome counterfeiters have accounts with Bank of China Ltd. and have issued subpoenas for information about their transactions,” report Nicole Hong and Lingling Wei.

The Bank of China has responded that turning over account records would violate Chinese law.

Read the article.