China Isn't Mars

[Randy W]

Even if you're NOT involved with legal or contractual issues, this is an interesting series, and I think is pertinent to ALL aspects of our dealings with Chinese people and their culture.

 

5,000 years of culture? They've only had the last 30 years to learn to deal with the hangover from the first 4,970 years.

 

Many of their laws and policies are based on those of the west, especially Western European countries.

 

If you are interested in reading further, the article contains links to the other articles in the series. From the China Law Blog.

 

 

Negotiating With Chinese Companies: China Isn’t Mars

Chinese companies will often seek to justify a contract demand by stating that “China is different.” It is shocking how often Western companies fall for this tactic and accept the China-side proposed terms.

It goes without saying that every country is different from every other country. But in terms of laws and regulations — and this is especially true of basic contract law — China is really quite similar to other countries. China’s contracts laws derive mostly from foreign models and they are also further constrained by China’s participation in the World Trade Organization (WTO), the World Intellectual Property Organization (WIPO), the Convention on the International Sale of Goods (CISG), and other international standards-setting bodies and conventions. In many respects, China’s laws hew closer to international standards than those of the United States, which has a reputation for “going it alone.” China’s laws are based on the civil law standard, while ours are based on the common law. So what often seems to a U.S. investor as an unusual legal provision is often nothing more than the difference between a common law approach and a civil law approach. China’s contract laws are in many respects similar to the contract laws in most Western European countries.

 

[Greg.D.]

Good link. To be fair, I believe when we were going to Japan in the 60's to 80's and beyond, they also schooled us in "death by a 1000 cuts" and willfully violating contracts and ip protections and resorting to a game of chicken with their lawyers against your team

[Allon]

There have been a couple of books out about companies wanting to do business in China. It often was not the legal battle, but the political one of getting local agreements done and finally, if manufacturing for example, finding the talent to for the factory work. The bosses were often difficult to deal with. They would call strikes without a moments notice or workers would just walk off the job.

 

And some factories by strange agreement had to be located in highly remote areas where transportation of the product to export locations was difficult to say the least.

 

One book is Mr. China: A Memoir, by Tim Clissold. He learned a lot, mostly those things not to do.