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July 20, 2007

China suppliers: So, Yank dudes, just sue us...

At Rich Kuslan's enduring Asia Business Intelligence, see "What Happens When Your Chinese Supplier Says: Sure, Go Ahead, Sue Me!", inspired by Prof. Donald Clarke's 2004 piece on enforcement of US judgments in China--which, by the way, happens rarely if ever. The Chinese take a dim view of default ajudications from a non-Chinese jurisdiction. If you must sue, sue in China--and even then plan on serious headaches. Thanks to our friend Dan Harris at China Law Blog, who chimes in, and opines, for flagging Kuslan's post and an issue which hits a raw and painful nerve with lots of Western clients doing business in China. There are, as both Kuslan and Harris point out, preventative steps you can take to protect your investment, e.g. letters of credit and arbitration provisions. But there's an overall teaching here: don't do business in China because everyone else does it or because the business media talks about it constantly. China is not Kansas, DC or southern Manhattan. Engage ultra-competent, experienced and aggressive help first.

Posted by Holden Oliver (Kitzb├╝hel Desk) at July 20, 2007 10:59 PM


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