Temat: Crucial advices on trading or investing in China

Crucial advices on trading or investing in China

By Sammy Lee

As a Chinese lawyer, I did plenty of cases relating with international trade and investment , according to my legal experience , I write following advices . I hope it is useful for you.

1. Before signing a contract, you should ask your partner to fax a copy of business certificate and ID card of legal representative of the company.
Reason: After the dispute happens , if you take legal action Chinese Court ask plaintiff to submit the certificate of defendant ,otherwise ,the court will refuse to place the case on file for investigation and prosecution
2. Before signing a contract, you should entrust a Chinese lawyer to do legal search on your partner in government apparatus.
Reason: some company trade with others using fake certificate, once they get money they will disappear. By doing search in government apparatus, you can make sure the true status of your partner. In China, Only lawyer has the right to investigate in government apparatus.
3. You should stipulate the place where the dispute should be arbitrated if disputes happen between you and your partner.
Reason: According to Chinese law, the person(s) involved in the contract has the right to stipulate where and which organization to arbitrate the dispute. If there is no arbitration clause in the contract, the case is under the jurisdiction of the court where defendant lives, which is disadvantage for the plaintiff.
4. If dispute happens, it should be settled in time. If there is no agreement can be reached, you should take legal action in time .
Reason: Some company transfer property secretly after dispute happens, even you win the case, there is no property can be executed.


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