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The Perils Of Foreign Contracating In China, Debra J. Reed
The Perils Of Foreign Contracating In China, Debra J. Reed
Debra J Reed
QUESTION PRESENTED
Whether a business contract executed between a foreign party and a Chinese party is enforceable in the courts of the People’s Republic of China?
BRIEF ANSWER
Probably not. Foreign party reliance on Chinese courts to enforce their contracts is premature because China is not yet a rule of law country. Chinese courts do not exercise judicial independence. Political domination by the Chinese Communist Party, CCP, over the courts, and Chinese local protectionism both influence the outcome of cases. Moreover, the Chinese legal system is wrought with corruption. Because inexperienced judges adopt new laws at varying speeds and apply …
Electronic Contracting In China, Debra J. Reed
Electronic Contracting In China, Debra J. Reed
Debra J Reed
QUESTION PRESENTED
Whether an electronically signed business contract between a Chinese and foreign party is legally valid under the 2005 Electronic Signature Law of the People’s Republic of China and is enforceable in China’s courts?
BRIEF ANSWER
An electronically signed business contract between a Chinese and foreign party is legally valid under the 2005 Electronic Signature Law of the People’s Republic of China, PRC. Statutorily, Chinese law enables electronic contracting by giving the same legal force to electronic signatures and data messages, as to traditional ink signatures and paper documents. Lack of payment systems, high costs to businesses of adopting …