The large volume of foreign-invested entities in China has created a need for reliable dispute resolution. Chinese law does not allow for foreign courts or foreign arbitration; as a result, foreign-invested entities must chose between the Chinese courts and the Chinese International Economic Arbitration Commission. However, many foreign parties are skeptical of the Chinese courts, and have chosen arbitration. This note suggests that not only may a satisfactory outcome for a foreign party be possible in the Chinese courts, but that the Chinese courts may be a better option for foreign-invested entities seeking to prevail in a suit against a Chinese party.
Forum Selection for International Dispute Resolution in China - Chinese Courts vs. CIETAC,
27 Hastings Int'l & Comp. L. Rev. 535
Available at: https://repository.uchastings.edu/hastings_international_comparative_law_review/vol27/iss3/9