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Litigation in China 2

 Time:2010-09-26 counter:4365

  During the past several years, the Chinese Courts have heard greater number of cases involving foreign elements, and this trend definitely will continue.This increase is attributed to at least two aspects. First, China’s fast-growing economy has dramatically enhanced China’s presence in the world market and thus significantly generated more transnational business transactions and foreign investment. As a result, the number of commercial/civil disputes inevitably increased. Furthermore, the Chinese Courts positioned themselves to deal with litigation involving foreign parties. One particular issue arising is whether to treat both Chinese and foreign parties equally in litigation.  The public image desired by the courts is one of competence in handling cases involving foreign elements fairly and justly. To that end, the Supreme Court repeatedly asked all courts to exercise jurisdiction over cases involving foreign elements in strict accordance with existing law, treaty, and private agreement.

 
 Despite the efforts of the Supreme Court to improve the Chinese judicial system and the success of foreign parties in the courts,  many foreign parties are still skeptical about litigating in Chinese courts. This reluctance is rooted in the fear that China is short of the rule of law in general and is lacking an independent judicial system. Nevertheless, foreigners and foreign companies doing businesses in China are subject to the jurisdiction of the Chinese courts. Therefore, a better understanding of the Chinese judicial system and Chinese court proceedings in international commercial litigation is essential to effectively protect foreign business interests.
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