Often the elephant in the room on any discussion of doing
business in China is the enforceability of contracts. Navigating
the legal landscape of contract enforcement in China can be a
complex and often daunting endeavor. China's legal system and
economic dynamism in particular pose hurdles for foreign entities
seeking to enforce contracts. The decision to initiate a lawsuit or
arbitration case can be costly and cumbersome, especially when it
involves cross-border disputes.
From drafting a contract with enforceable clauses to maneuvering
with foreign-sourced evidence, there are many potential pitfalls. A
lack of mutual recognition between national courts and the
logistical challenges associated with enforcing judgments and
arbitration awards further complicates the matter. In this article,
we will explore these challenges in detail, and provide insights
and strategies to help navigate the often-misunderstood world of
contract enforcement in China.
