Hong Kong: Herbert Smith Freehills has launched a new edition of its practical guide, "Governing law and dispute resolution clauses for China-related contracts".
Popularly known as 'The Dragon Book', the guide helps in-house lawyers negotiating China-related commercial contracts to understand the workings of Mainland Chinese law as it affects choice of law and other options for resolving disputes.
"Every commercial contract in the world should state the law by which it is governed and cover what will happen if things go wrong – will disputes will be resolved by arbitration or litigation; where will the process take place?" said Herbert Smith Freehills arbitration partner May Tai.
"However, Chinese law restricts both the choice of law and the types of dispute resolution that can be used for China-related contracts, so drafting the relevant clauses in these contracts is not straightforward."
Since the first edition of The Dragon Book was published, the scale of China business has grown enormously, and disputes have naturally grown as deal volume increases.
"As Chinese investors extend their reach yet further, including as part of the One Belt, One Road initiative, it is inevitable that we will see an increasing number of disputes involving Chinese parties," said May. "Understanding how best to structure your contract to resolve these disputes when they do arise, and enforcing the ultimate outcome, is a vital piece of the investor's toolkit".
For a copy of the guide, please email [email protected].
Notes for editors
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