The article was originally written in Chinese,
the English version is a translation. This article was first
published in the firm's periodical China Bulletin April
Issue, 2008, Vol.32)
Lacking knowledge of and exposure to China's judicial and
arbitrational system, foreign companies usually worry about dispute
resolution clauses more than any other clause in a contract.
Deciding which arbitration tribunal and what arbitration rules to
specify becomes a sensitive and important aspect of contract
negotiations for wholly foreign owned entities
("WOFE") and cooperative joint ventures
("CJV").
I. Choice of Arbitration Tribunal
Contracts in which one party is a foreign entity will contain
foreign elements, allowing the parties to choose their jurisdiction
without restriction under PRC law. The parties to such a contract
may decide at their discretion whether to choose an arbitration
tribunal within China or in another country, or resort to ad hoc
arbitration to
