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Home > Country profiles > China > Articles > Article detail

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How I learned to stop worrying and love Chinese Courts

Tuesday, 2nd May 2018

"The traditional view of Chinese civil and commercial courts is that they are beholden to vested interests and often hand out unfair judgments. This view is quite right, but only for local-level courts. The higher the level of court, the more difficult it is for a local state enterprise to exert pressure on its operations. As a basic rule of thumb, the entity exerting the pressure needs to be one rung above the institution it wants to influence.

Why English law could rule on China’s belt and road disputes

There are many exceptions to this rule, because in reality pressure is exerted on individuals, not institutions. Nevertheless, a city level company would have a very hard time influencing a judgment issued by a provincial level court.

China’s wide-ranging Belt and Road Initiative inevitably involves transactions and contracts that have, and will, result in disputes. How should they be resolved?

If normal patterns of cross-border project dispute resolutions are to followed, one would assume it would be either by submission to international arbitration, or by English courts, as these are commonly used when both parties to a contract want to find a relatively independent resolution mechanism."

Read in full:  

Language: English
Contact: Nicolas Groffman

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