Chinese Contract Formation: The Roles of Confucianism, Communism, and International Influences

China has opened its doors to the world so understanding Chinese contract law is crucial to succeeding in international business transactions. The United States and China are both signatories to the United Nations Convention on Contracts for the International Sale of Goods (CISG), and both nations have declared that neither are bound under Article 1(1)(b), which means that if a contractual conflict arises, the domestic law of either nation may apply when interpreting the contract. China only requires offer and acceptance whereas the United States requires mutual assent and consideration, so contract interpretation may be problematic. Beyond offer and acceptance, Chinese contract formation law has also been heavily influenced by Confucianism, Communism, and China\u27s desire to enter the World Trade Organization (WTO). This article addresses the background and impact of past, present, and future influences in Chinese contract law and discusses several imminent problems that still exist with Chinese law on contract formation