When Doing Business in China, the Moment a Dispute Arises—Your Money Has Already Started Counting Down
When Doing Business in China, the Moment a Dispute Arises—Your Money Has Already Started Counting Down If a foreign investor encounters a contract dispute in China, how can they win? My answer is usually: By the time you’re thinking about how to win, you’ve already lost. Why? Because most people focus only on “how to fight the lawsuit,” overlooking three truly hidden costs— First: Frozen Assets. Once litigation begins, your bank accounts, accounts receivable, and even inventory assets can be frozen. According to Article 103 of the Civil Procedure Law of the People’s Republic of China, the court may impose asset preservation measures upon the other party’s application. This means …
