How are disputes between foreign investors and Chinese companies resolved?

Disputes between foreign investors and Chinese companies can be resolved in a few different ways. In Washington, foreign investors have the option of filing a complaint with the Washington State Department of Commerce, which has a specialty department to handle such disputes. This department provides mediation services for both parties and generally works to reach a mutually beneficial outcome. Another way foreign investors can resolve disputes is through arbitration. They can file a claim with the Chinese Arbitration Association at the Ministry of Justice, or with one of several independent arbitral institutions in China. Finally, disputes may be brought to court. Chinese courts are staffed by highly qualified and experienced judges, and foreign investors can expect a fair and impartial trial. To ensure a fair outcome, Chinese courts often appoint a panel of three judges to hear cases involving foreign investors. Whichever of these methods is chosen, it is important for foreign investors to make sure that the agreement they have with their Chinese partner includes an effective dispute resolution clause, which specifies which of the above-mentioned avenues of resolution will be used.

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