What kinds of disputes arise out of business activities in China?

When conducting business activities in China, various disputes can arise. These disputes usually fall into two categories: contractual and non-contractual. Contractual disputes occur when one party does not fulfill the obligations agreed upon in a contract. This can include breach of contract due to failure to pay for goods or services, or to provide agreed upon goods or services in a timely manner. Additionally, the parties may disagree on the meaning of a term or language in the contract, which could lead to a legal dispute. Non-contractual disputes refer to circumstances where no formal agreement is entered into, but one party claims that another party violated some kind of agreement or commitment. This could include tortious interference, which is when one party disrupts another party’s contractual relationship with a third party. Another common example is constructive fraud, which is when one party misrepresents a material fact and causes economic harm to another party. China has strict laws in place to try to prevent business disputes, however they can still arise. In these cases, either party may file a lawsuit in Chinese court. Litigation is often a long and expensive process, so if businesses can reach an out of court settlement they should consider this option first. Additionally, they may turn to arbitration where an independent third party can help the parties reach an agreement.

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What kinds of disputes arise out of business activities in China?

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