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Disputes with Chinese companies should be resolved with care

Companies in Charleroi, Pennsylvania, do business with other companies in the state, but also with out-of-state companies and countries based in other countries, like China. Those business deals can be very lucrative, bringing a lot of money into the state, but they can also be complex, and if they go awry, can lead to business litigation.

Most of the disputes that arise when Pennsylvania companies do business with Chinese companies are with the Chinese individuals or corporations involved, not the Chinese government. When representatives of Pennsylvania go to China to resolve disputes with Chinese individuals or corporations, however, they may want to ask the Chinese government to encourage adherence to the terms of the business contract that has been signed.

Whether choosing to do that or not, the primary method of resolving disputes with Chinese companies is by negotiation. Indeed, the contract between the companies may stipulate that negotiation will be tried as the first way to try to resolve any dispute. Of course, you don't want negotiations to drag on forever, so it is important to agree to a time limit for successful resolution of the issues at hand at the outset of negotiation.

If there is no successful resolution, arbitration can be tried. That also can be provided for in the original contract as the method to be pursued if arbitration fails. An agreement to arbitrate in a contract will usually designate the law that will govern the dispute and also name the arbitration body, such as the China Maritime Arbitration Commission (CMAC) or the China International Economic and Trade Arbitration Commission (CIETAC).

Of course, as with the resolution of any business matter, it is important to be clear about what you want and what needs to happen for you to get it. You should also be prepared to discuss the issues in a constructive manner.

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