Dancing with the Dragon: What U.S. Parties Should Know About Chinese Law When Drafting a Contractual Dispute Resolution Clause

This paper draws on scholarly and field research in both the United States and China to present a legal and practical primer for U.S. parties entering the Chinese marketplace. As China\u27s role in the global economy becomes more prominent, American companies are finding that doing business in China is necessary to retaining a competitive edge. As the number of transactions between American and Chinese companies increases, however, the number of potential disputes increases correspondingly. Unique legal and practical circumstances in China require a China-specific approach to managing such disputes. The paper identifies one such approach – the use of a contractual dispute resolution clause – and discusses the options available to U.S. parties with regard to the legal validity of such a clause, the practicality of enforcing the clause and any judgments or awards that may ensue, and a forecast of likely future trends