China Watch: Arbitration in India and China—Concerns and Options

India is now the fourth largest economy in the world and the second fastest growing economy in the world. With consistent 7% growth during the past few years it is chasing and catching the Chinese Dragon, which is trying to depress a growth rate of 9+% to avoid overheating. Both economies desire and require foreign investment. A major driver of foreign investment is the comfort level foreign corporations feel in the country, directly influenced by the rule of law and, more specifically, a good exit strategy in the event of an unsuccessful venture. Exit strategies include litigation and—more frequently in the modern world—arbitration. This article briefly examines the current arbitration regimes in India and China and provides some thoughts about better protections for the foreign investor. Fortunately, in both countries, domestic private companies increasingly agree to arbitrate abroad. For government contracts requiring domestic arbitration, foreign contractors still need to