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Dan HarrisHarris & Moure, pllc

USA| China

www.harrismoure.com www.chinalawblog.com

Avoiding and WinningChina Disputes

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Two Keys

Good Partner

Good Contract

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Good Partner

Due Diligence

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Good Partner - 2

Distrust all company info.

Look Around/Ask Around.

Forget the paper/Scrutinize the paper. Do not delegate/Delegate.

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Good Contract

Why Bother?

What About Corruption?

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Good Contract 2

1. A real contract - in writing.2. One language 3. Incredibly specific. Excruciating detail.4. Think liquidated damages5. Aorneys fees? 6. Signed AND Sealed7. Who/What/Where

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Suing Outside China

Chinese courts have no obligation to

enforce US or UK or Canadian or

Australian judgments- and they dont.Chinese courts are generally required

to enforce international arbitral awards.

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Suing In China

Chinese Law? Document-based Moderately formal Cheap and fast. Unless. Nobody seles.

Very low damages Injunctive relief

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Arbitration

Where will arbitration occur? Choice of Law? Institutional or ad hoc? Fees? Language? Arbitrators nationality? Enforcing Award?

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Arbitration 2

Arbitration Law of China, Article 16 The following contents shall be included in

an arbitration agreement:

1. The expression of the parties' wishto submit to arbitration;2.The maers to be arbitrated; and

3.The Arbitration Commissionselected by the parties.

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Arbitrating Outside China

Hong Kong, Singapore, Vancouver, London,

Geneva, New York, etc. China does not recognize ad hoc arbitrations

(HK exception?). Enforcement in China under New York

Convention: Geing beer.

Best on quality and fairness Are you Chinese and dont know it?

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Arbitrating In China: CIETAC

Beijing, Shanghai, and Shenzhen Must be by consent. Can occur outside China. Has own panel of arbitrators (25% foreign),

but can appoint outside the panel ifCEITAC Chairman agrees.

Chinese nationals unless parties agree andpush for foreigners.

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CIETAC - 2

Very limited discovery. Short, informal, document-focused hearings. Tribunal shall consider international

practices and principles of fairness and

reasonableness.

This is important. Foreign counsel permied, except on maers

involving Chinese law (?). Chinese language used unless parties agree

otherwise. Three arbitrators unless parties agree

otherwise.

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CIETAC 3

Confidential Award is final.

The losing party usually pays costs, butnot aorney fees, unless in contract. Intermediate Peoples Court enforces

the award with limited grounds torefuse.

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CIETAC - 4 Contract Clause

Specify English language. Specify non-Chinese arbitrator, or two

or three. Think about discovery. Think about injunctive relief- carve out. Think about third parties. Service/Notice

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Dan HarrisHarris & Moure, pllc

USA| China

www.harrismoure.com www.chinalawblog.com