Dispute resolution
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Does local law allow for a choice of governing law?

Frequency/market practice: PRC law is mandatory for certain types of agreements (e.g., a purchase agreement of which both the seller and the buyer are Chinese entities, and JV contracts with Chinese entities). Otherwise, Hong Kong or English law is more common.

What is the common governing law?

Frequency/market practice: PRC law is mandatory for certain types of agreements (e.g., a purchase agreement of which both the seller and the buyer are Chinese entities, and JV contracts with Chinese entities). Otherwise, Hong Kong or English law is more common.

Is litigation or arbitration more common? If arbitration, where?

Frequency/market practice: Arbitration is more common. Hong Kong is predominately chosen but will typically carve out court or administrative action (e.g., injunction). Chinese arbitration (e.g., China International Economic and Trade Arbitration Commission) is becoming more accepted in the market.