How Do Wholly Foreign Owned Enterprises (WFOEs) Win Lawsuits In China?

Operating an enterprise in a foreign jurisdiction is a business activity that is rife with potential pitfalls. Most often, foreign enterprises must abide by both the laws of their jurisdiction of origin and the nation in which they operate their businesses. Which laws apply and to what degree largely depend upon the circumstances, but suffice it to say that a breach of criminal or civil law in either a company's home jurisdiction or foreign place of operation is likely to land the organization in legal trouble. But what should a Wholly Foreign Owned Enterprise ("WFOE") operating in China do to avoid ending up in court? And if a WFOE does find itself before a Chinese judge, how can the company maximize its chances of winning the case?