Parties often prefer to settle a dispute rather than revert to court, but if a satisfactory compromise cannot be found, then the only way to resolve the dispute may well be to file a lawsuit. Common risks to Chinese litigation (and to a certain extent, arbitration in China) are local protectionism, strict evidentiary rules, and enforcement challenges, but just as important in many smaller disputes is the cost of litigation. Companies should carefully consider whether the legal costs are worth th